sign in sign up
<<
Home , Property tax, Rates in Hong Kong

ADDENDUM GENERAL INFORMATION1

TABLE OF CONTENTS ...... A-43 Addendum – General Information...... A-1 Puerto Rico...... A-44 United States...... A-2 Rhode Island...... A-45 ...... A-2 ...... A-45 ...... A-2 ...... A-46 Arizona...... A-3 ...... A-47 Arkansas...... A-5 ...... A-47 ...... A-6 ...... A-48 Colorado...... A-8 ...... A-49 Connecticut...... A-9 Virginia...... A-50 ...... A-10 ...... A-51 District of Columbia...... A-12 ...... A-51 Florida...... A-12 ...... A-52 ...... A-13 ...... A-53 Hawaii...... A-14 Australia...... A-55 Idaho...... A-16 Australian Capital Territory (ACT)...... A-55 ...... A-17 New South ...... A-55 ...... A-18 Northern Territory (Australia)...... A-56 Iowa...... A-20 Queensland...... A-57 Kansas...... A-21 South Australia...... A-61 ...... A-22 Tasmania...... A-62 Louisiana...... A-23 Victoria...... A-64 Maine...... A-25 Western Australia...... A-65 ...... A-26 Canada...... A-67 Massachusetts...... A-27 ...... A-67 ...... A-28 (BC)...... A-68 ...... A-29 New Brunswick...... A-70 ...... A-30 Newfoundland...... A-71 ...... A-31 Nova Scotia...... A-71 ...... A-31 ...... A-72 Nebraska...... A-32 Quebec...... A-73 Nevada...... A-34 ...... A-74 ...... A-35 Kong...... A-75 ...... A-36 Ireland...... A-77 ...... A-36 New Zealand...... A-81 New York...... A-37 South Africa...... A-82 North Carolina...... A-38 United Kingdom...... A-85 ...... A-39 ...... A-85 Ohio...... A-41 Northern Ireland...... A-87 Oklahoma...... A-41 ...... A-90 ...... A-42 Wales...... A-91 1. Information contained in this Addendum is based on details supplied during 2013; there may have been some factual changes in a number of jurisdictions since then which are not reflected in the current version of the Addendum. UNITED STATES may appeal a “final decision” of a board of equalization to the circuit court of the where the is located. Ala. Alabama Code § 40-3-25. The taxpayer must file notice of appeal with 1. of Property System? . the secretary of the board of equalization and with the clerk of the circuit court within 30 days from the date of the final 2. Type of property taxed along with brief description? decision. Ala. Code § 40-3-25. and business . is generally taxable, unless specifically exempted. 16. Independent body to determine unresolved appeals? Ala. Code § 40-11-1(b). Appeals of decisions by the board of equalization may be appealed to the circuit court of the county in which the prop- 3. Person tax legally imposed on? Owner. Ala. Code § 40- erty at issue is located. Ala. Code §§ 40-3-24, -25. 7-1 17. Property vs. other revenue? 4. Unit of assessment? Piece, parcel, tract, or lot. Ala. Code § Alabama collected approximately $2.57 billion in state and 40-11-1(b). local property in 2010. This represented 19.37% of the 5. (s) set by? State and . $13.28 billion in state and local taxes collected. 6. Current tax rate? The state’s tax rate is 0.65%. and Property taxes accounted for approximately 44% of taxes col- county tax range from 0-4.93%, but the average rate lected at the local government level. state-wide (including the state’s rate) is 4.2%. There are four At the state level, property taxes represented only about 4% classes of property with different assessment ratios: of total taxes collected. Class I (Utility) – 30% of market value 18. Any significant recent changes and important issues? Class II (catch all) – 20% of market value Classification of Property as Residential or Homestead (Amend- Class III (Agricultural/Residential/Forest/Historic) – 10% ing Ala. Code §§ 40-8-1 and 40-9-19; Effective Date: Sept. of market value 1, 2011) - Provides that the classification of property as resi- Class IV (Privately owned autos and trucks) – 15% of market dential property or a homestead would not be affected under value. Ala. Code § 40-8-1(a). certain conditions when the property is damaged by a natural 7. Frequency of adjustment of tax rate(s)? Annually. disaster. Act 2011-710 (SB 506). 8. Tax collected by? State Department of Revenue and county tax offices, depending on the specific property tax. Alaska 9. Assessor responsible for assessments? All taxable real 1. Title of Property Tax System? Property Tax. and personal property, with the exception of 2. Type of property taxed along with brief description? property, is assessed on the local level by the county assess- All real and tangible personal property used primarily to ex- ing official. Utility property, freight line and equipment com- plore for, produce, or transport unrefined oil or gas by pipe- panies are centrally assessed by the Department of Revenue line is subject to a state-wide property tax. Alaska Stat. §§ (DOR). 43.56.010, 29.45.080. Real and personal property is locally 10. Basis of valuation? Fair and reasonable market value. assessed and taxed by . Alaska Stat. § 29.45.010. Ala. Code § 40-7-62. 3. Person tax legally imposed on? 11. Frequency of general revaluations? Property is ap- Every person having or control of an interest in praised annually. taxable property. Alaska Stat. § 43.56.070, 29.45.120. 12. Date of last general revaluation? Varies by assessing ju- 4. Unit of assessment? Parcel. risdiction 5. Tax rate(s) set by? Governing body (city council, or the 13. Valuation date used for current assessment period? Oc- borough assembly). tober 1st. Ala. Code § 40-1-3 6. Current tax rate? 14. Main exemptions/reliefs? Agricultural land; charities; Fourteen of the eighteen organized boroughs levy a property government; religious organizations; homesteads; schools tax. Only eleven outside of boroughs levy a property tax. 15. Initial appeal process? Tax rates for locally assessed real and personal property are not A taxpayer may object to property values published by a published. The oil and gas property tax rate is 2% of assessed county tax assessor by filing a written protest with the county value. A credit of up to 2% against the state-wide tax imposed board of equalization within 30 days of the date of final pub- on oil and gas property by local jurisdictions is allowed. The lication of the property values in the local newspaper or by smallest mill rate recorded for 2012 was $1.26 per thousand, posting in three public places. Ala. Code § 40-3-20; Four while the largest was $32.916. http://www.commerce.state. Seasons, Inc. v. State, 450 So. 2d 110 (Ala. 1984). A taxpayer ak.us/dca/osa/pub/12AKTax_tab5.pdf (pp. 29-32).

A-2 7. Frequency of adjustment of tax rate(s)? Annually. Alaska (DOR) within 20 days of the effective date of the notice. Stat. § 29.45.240(b) Alaska Stat. § 43.56.110. For locally assessed property, tax- 8. Tax collected by? Municipal/Local government. Alaska payers have 30 days from the notice of assessment to submit Stat. § 29.45.240 a written appeal to the assessor. Alaska Stat. § 29.45.190. 9. Assessor responsible for assessments? 16. Independent body to determine unresolved appeals? Local Assessor is responsible for locally assessed real and Centrally Assessed property : Objections to centrally assessed personal property. Alaska Stat. § 29.45.240. The DOR is re- property (i.e., oil and gas property) must be filed with the sponsible for assessing oil and gas production and pipeline DOR within 20 days of the effective date of the notice. property. Alaska Stat. § 43.56.110. After a ruling by the Department a party may further appeal to the local Board of Equalization 10. Basis of valuation? within 50 days from the effective date of the notice of the Property in Alaska is required to be assessed (valued for . Alaska Stat. § 43.56.120. An owner or munici- purposes) at fair market value. An assessment should be pality may appeal to the superior court for trial de novo of about the same amount as what the owner believes the prop- the board of equalization’s action. Alaska Stat. § 43.56.130(i). erty would sell for in the open market. Alaska Stat. Locally Assessed property : For locally assessed property, tax- § 29.45.110. There are some variations on what “full and true payers have 30 days from the notice of assessment to submit value” is, in limited cases. These are found inAlaska Stat. §§ a written appeal to the assessor. If unsatisfied with the as- 29.45.060 -.065, 29.45.110, and 29.45.230, and cover certain sessor’s ruling the taxpayer may appeal to the local Board of uses that restrict or limit the ability to recover full and true Equalization. Alaska Stat. § 29.45.190. Board decisions may value upon sale, such as use, conservation , or be appealed to the superior court. Alaska Stat. § 29.45.210. property affected by a natural disaster. 17. Property tax revenue vs. other revenue? 11. Frequency of general revaluations? Alaska collected approximately $1.52 billion in state and lo- Both state and municipal taxable property is valued annually. cal property taxes in 2011. This compares to $7.4 billion in Alaska Stat. §§ 29.45.160, 43.56.090. total state taxes collected. 12. Date of last general revaluation? Property taxes accounted for approximately 80% of taxes col- At the state level, the Department of Revenue must annually lected at the local government level. prepare an assessment roll. Alaska Stat. § 43.56.090. At the local level, the county assessor must also prepare an assess- 18. Any significant recent changes and important issues? ment roll annually. Alaska Stat. § 29.45.160. Residential Exemptions: An initiative measure to increase residential property tax exemptions has passed in the August Assessors assess property as of its full cash value on Janu- 28, 2012 primary election ballot. Initiative 09RPEA would ary 1st. Assessors then mail preliminary tax statements to allow local governments to subtract up to $50,000 from a property owners, with tax bills following once levy rates are ’s assessed value before calculating property taxes. State determined. law currently limits the exemption to $20,000. The initiative Alaska law does not specify a deadline for completion of the will further adjust the exemption amount for inflation. assessment roll. But tax rates have to be established by June 15th of each year, with tax statements sent out no later than Arizona July 1st. 1. Title of Property Tax System? Property Tax. 13. Valuation date used for current assessment period? January 1st. Alaska Stat. §§ 29.45.110, 43.56.060. 2. Type of property taxed along with brief description? Real and personal property - Locally assessed: general busi- 14. Main exemptions/reliefs? ness + Centrally assessed: mining, oil and gas, utilities, pipe- Homesteads; federal property; municipal property; intangi- lines, airlines, railroads, telecommunications ble property; nonprofit, religious, charitable, and educational organizations; state property and property of the University 3. Person tax legally imposed on? of Alaska; timber (unharvested); etc. The real property tax is imposed on the property itself and there is no personal liability on the Owner. For personal Alaska exempts from property taxes, the first $150,000 of as- property, the owner is personally liable for the tax. sessed value for all senior citizens (65 years of age and over) and disabled veterans (50% or more service connected disabil- 4. Unit of assessment? Separate Parcel. ity). http://www.commerce.state.ak.us/dca/osa/taxfacts.htm 5. Tax rate(s) set by? County. 15. Initial appeal process? 6. Current tax rate? Assessments of centrally assessed oil and gas property must Tax rates vary by districts within each of the 15 counties. be filed in writing with the Alaska Department of Revenue Nine different classes of property are taxed at different per-

A-3 centages of their value: Ariz. Rev. Stat. § 42-11001. http:// 12. Date of last general revaluation? Property is valued ev- www.azdor.gov/Portals/0/AnnualReports/FY12_Annual_ ery year. Report_Web.pdf (pp.76-77). 13. Valuation date used for current assessment period? Class 1: most business property, including mining, utilities, January 1st of the year before the tax year. I.e., January 1, 2014 commercial, and telecommunications - rate being reduced will be the valuation date for the 2015 property tax year. over time on the following scale: 14. Main exemptions/reliefs? 20% for tax year 2012 Agricultural property (up to $50,000); business personal 19.5% for tax year 2013 property (first $50,000, the business personal property and 19% for tax year 2014 agricultural property exemptions are increased annually for 18.5% for tax year 2015 inflation – the 2013 exemption amount is approximately 18% for tax year 2016 and beyond $133,868); government and ; non profit hos- Ariz. Rev. Stat. § 42-15001 pitals, health care facilities for the elderly or disable, and Class 2: agricultural profit and non-profit – 16% through tax community health care centers; intangible property; non- year 2015, 15% thereafter. Ariz. Rev. Stat. §§ 42-12002, 42- profit, religious, charitable, and educational organizations 15002. 15. Initial appeal process? Class 3: residential property - 10%. Ariz. Rev. Stat. §§ 12003, Locally Assessed Property: Appeal to county assessor, then 42-15003. to the county board of equalization. If the county has no board of equalization, then the assessment is appealed to the Class 4: rented residential property - 10%. Ariz. Rev. Stat. §§ state board of equalization. 42-12004, 42-15004. Centrally Assessed Property: Department of Revenue Class 5: railroad and flight property,Ariz. Rev. Stat. § 42- Alternately, a direct appeal to the Arizona tax court or the 12005 - 15% superior court in the county where the property is located, Class 6: special purposes property - 5%. Ariz. Rev. Stat. §§ by-passing the administrative appeal steps, may be main- 42-12006, 42-15006. tained. Ariz. Rev. Stat. § § 42-16201 and 16204. Class 7: commercial historic property - same as Class 1 16. Independent body to determine unresolved appeals? property, except modifications to restore and rehabilitate his- Yes. Taxpayers may appeal to court decisions of the county toric property is assessed at 1% for up to ten years. Ariz. Rev. boards of equalization, Ariz. Rev. Stat. § 42-16202, the state Stat. §§ 42-12007, 42-15007. board of equalization, Ariz. Rev. Stat. § 42-16203, and the DOR, Ariz. Rev. Stat. § 42-16204. Alternatively, taxpayers Class 8: historic/residential property - same as Class 4 prop- may appeal directly to the court prior to exhausting all of erty (10%), except modifications to restore and rehabilitate their administrative remedies. Ariz. Rev. Stat. § 42-16201 historic property is assessed at 1% for up to ten years. Ariz. Rev. Stat. §§ 42-12008, 42-15008. 17. Property tax revenue vs. other revenue? Arizona collected approximately $7.32 billion in state and Class 9: possessory interests on government property used local property taxes in 2010. This represented 37.26% of the for specific purposes - 1%. Ariz. Rev. Stat. §§ 42-1200, 42- $19.63 billion in state and local taxes collected. 15009. Property taxes accounted for approximately 69.25% of taxes 7. Frequency of adjustment of tax rate(s)? Annually. collected at the local government level. 8. Tax collected by? County. At the state level, property taxes represented only 7.6% of total taxes collected. 9. Assessor responsible for assessments? Local county assessor, except centrally assessed property 18. Any significant recent changes and important issues? (railroads, mines, utilities, pipelines, oil, gas and geothermal Proposition 117 - Two value system collapsed beginning in , airlines, private car companies, telecommunica- tax year 2015. In November 2012, Arizona voters approved tions companies, airport fuel delivery companies) are valued Proposition 117, a constitutional amendment, which col- by the Arizona Department of Revenue. lapses Arizona’s two value system for tax year 2015 (valua- tion year 2014) and thereafter. Under Proposition 117, “[f ] 10. Basis of valuation? or purposes of taxes levied beginning in tax year 2015, the Full cash value , which is defined as the value as determined value of real property and improvements . . . used for all ad by statute and if no statutory method is prescribed, full cash valorem taxes shall be the lesser of the full cash value of the value is synonymous with market value which means the es- property or an amount 5% greater than the value of property timate of value that is derived annually by using standard ap- determined pursuant to this subsection for the prior year.” In praisal methods and techniques. Ariz. Rev. Stat. § 42-11001 short, annual increases in property value will be capped at 5% 11. Frequency of general revaluations? Annually. over the previous year’s limited value, with the total limited

A-4 value not exceeding full cash value. This new limited value not exceed the full assessed value determined by the most will be used for purposes of calculating both primary and recent reappraisal. secondary property taxes. Except as provided in paragraph g), if the parcel is a tax- payer’s homestead used as the taxpayer’s principal place of Arkansas residence then for the first assessment following reappraisal, 1. Title of Property Tax System? Property Tax. any increase in the taxable assessed value of the parcel shall be limited to not more than five percent (5%) of the taxable 2. Type of property taxed along with brief description? assessed value of the parcel for the previous year. In each year Real and personal property. thereafter the taxable assessed value shall increase by an ad- 3. Person tax legally imposed on? ditional five percent (5%) of the taxable assessed value of the Owner. Ark. Code Ann. § 26-3-201. parcel for the year prior to the first assessment that resulted Unless a for a term of 10 years and the property belongs from reappraisal but shall not exceed the full assessed value to the state or any religious, scientific, or benevolent society as determined by the most recent reappraisal. or institution, whether incorporated or not, and school, semi- If a homestead owner’s taxable assessed value was frozen prior nary, saline, or other lands, then it shall be assessed to the to the current assessment year, it will only change in the follow- lease holder. Ark. Code Ann. § 26-26-905. ing circumstances: the current or a subsequent reassessment 4. Unit of assessment? Separate Parcel. establishes that the taxable assessed value of his/her property 5. Tax rate(s) set by? County. has decreased; the current or future owner no longer qualifies under Amendment 79 for the freeze: the full assessed value of 6. Current tax rate? any substantial improvement, as defined inACD Rule 4.08.2, Though only one class of property, there are varying millage will be added to the taxable assessed value of the property. rates for counties, cities, and school districts. Combining the county, city, and rates, the highest tax rate for 11. Frequency of general revaluations? Varies by assessing 2012 was 5.2%, the lowest was 3.72%, and the average was jurisdiction. 4.6%. http://www.arkansas.gov/acd/pdfs/2012_Millage_Re- 12. Date of last general revaluation? January 1st. .pdf. All property is assessed at 20% of true, actual, or 13. Valuation date used for current assessment period? market value. Public property used exclusively for public purposes 7. Frequency of adjustment of tax rate(s)? Annually. 14. Main exemptions/reliefs? 8. Tax collected by? Churches used as such Real property and personal property taxes are collected by Cemeteries used exclusively as such the county government. Taxes from centrally assessed prop- erty are collected by the Department of Finance and Ad- School buildings and apparatus ministration. Libraries and grounds used exclusively for school purposes 9. Assessor responsible for assessments? Buildings and grounds and material used exclusively for County assessors appraise and assess all property in the charity, Ark. Constitution Art. 16 Sec. 5 counties. The Tax Division of the Public Services Commis- All capital invested in a textile mill for the manufacture of sion assesses and equalizes the property of public utilities and cotton and fiber goods in any manner is exempt for seven carriers and private car companies. years from the date of the location of said mill, Ar. Const. 10. Basis of valuation? amend. 12 20% of true and full market or actual value. Ark. Code Ann. Intangible personal property may be designated as one or § 26-26-303 more classes of personal property and such class or classes Under sections 1 and 2 of Amendment 79 of the Arkansas may be exempted by the legislature, Ark. Constitution Amd. Constitution, the following limits on increases in assessed 57. All intangible personal property has been exempted by value apply: the legislature, Ark. Code Ann. § 26-3-302 If the parcel is not a taxpayer’s homestead used as the tax- payer’s principal place of residence, then for the first assess- Household furniture and furnishings, clothing, appliances, ment following reappraisal, any increase in the taxable as- and other personal property within the home, if not held for sessed value of the parcel shall be limited to not more than sale, rental, or other commercial or professional use, are ex- ten percent (10%) of the taxable assessed value of the parcel empt. Ark. Constitution Amd. 71 for the previous year. In each year thereafter the taxable as- 15. Initial appeal process? sessed value shall increase by an additional ten percent (10%) Locally Assessed - If dissatisfied with the county assessor’s as- of the taxable assessed value of the parcel for the year prior sessment of his or her property a property owner may peti- to the first assessment that resulted from reappraisal but shall tion or apply by letter before the third Monday in August

A-5 to the county board of equalization for an adjustment. Ark. 3. Person tax legally imposed on? Code Ann. §§ 26-26-910, 26-27-317. [The board is required Owner for locally assessed property; owner or user for cen- to begin hearing appeals no later than the second Monday trally assessed property. in August, and must decide the merits of an adjustment and 4. Unit of assessment? notify the property owner of its decision in writing no later Separate parcel for locally assessed property; the operating than 10 working days after the hearing]. unit for centrally assessed property. Centrally Assessed - Public utilities and carriers and private 5. Tax rate(s) set by? car companies dissatisfied with the assessment by the Tax County, with the exception of the timber yield tax rate which Division of the Public Service Commission (PSC) may file is set by the state. Can also be set by municipalities to cover a written petition for review with the PSC or Transporta- local costs not covered by county. tion Safety Agency (TSA) respectively within 10 days from receiving notice of the assessment. Ark. Code Ann. §§ 26-26- 6. Current tax rate? 1610, 26-26-1705. [Taxpayers are entitled to have interest The maximum general rate of tax on assessed value is 1%. waived if, for reasons outside the taxpayer’s control, a hearing Additional increments may be added to repay voter approved cannot be held within 180 days of the taxpayer filing a pro- bonded indebtedness. The Timber Yield tax rate is 2.9%. test. Ark. Code Ann. § 26-18-405(d)(1)(C)]. 7. Frequency of adjustment of tax rate(s)? Annually. 16. Independent body to determine unresolved appeals? 8. Tax collected by? Locally Assessed – A property owner dissatisfied with the deci- Taxes under the state-administered “Private Railroad Car Pro- sion of the county equalization board may appeal to the county gram” [discussed infra] and the Timber Yield Tax are collected court by the second Monday in October. Ark. Code Ann. § 26- by the State Board of Equalization (BOE). Tax revenue collected 27-318. [The appeal has preference over all other matters in the from the “State-Assessed Properties Program” or the “Timber th court and is heard and decided on or before November 15 of Yield Tax Program” is collected at the county level. Tax revenue the same year]. Taxpayers are required to first exhaust their rem- from locally assessed property is collected at the county level. edy before the board of equalization in order to appeal to the county court, unless they did not have an opportunity to appear 9. Assessor responsible for assessments? before the board. Ark. Code Ann. § 26-27-318. The BOE assesses (1) railroad cars (that are not owned by railroad companies, but are operated on railway lines within Centrally Assessed – Public utilities, carriers, and private car the state) under its Private Railroad Car Program; (2) pub- companies may appeal the order or finding of the PSC or lic utilities and railroads under its State-Assessed Properties TSA to the Pulaski County Circuit Court and then to the Program; and, (3) the harvest value of timber under its Tim- Arkansas Supreme Court by filing written notice with the ber Yield Tax program. All other property is assessed at the PSC within 30 days from the date of the action or order ap- county level by local assessors. pealed. Ark. Code Ann. § 26-24-123 . 10. Basis of valuation? 17. Property tax revenue vs. other revenue? The assessed value of most locally assessed real property is Arkansas collected approximately $1.74 billion in state and lo- equal to its most recent purchase price adjusted each year cal property taxes in 2010, representing 18.32% of the $9.49 by the lesser of 2% or the rate of inflation. Personal property billion in state and local taxes collected. At the state level, and state-assessed property are annually assessed at current property taxes represented only 12.28% of total taxes collected. fair market value. Property taxes accounted for approximately 41.89% of taxes 11. Frequency of general revaluations? collected at the local government level. Most locally assessed Real Property –Real property is re- 18. Any significant recent changes and important issues? valued to market value upon the date that a change of own- Hearing on Appeal - Under Act 585 (S.B. 332), taxpayers ership occurs or the new construction is completed. When are entitled to have interest waived if, for reasons outside the real estate values decline or property damage occurs causing taxpayer’s control, a hearing cannot be held within 180 days a property’s market value to fall below its assessed value, a of the taxpayer filing a protest of a proposed assessment by property owner may obtain a “decline in value adjustment.” the director. Locally Assessed Personal Property – Annually at market st California value on the January 1 lien date st 1. Title of Property Tax System? Property Tax. Utilities – Annually at market valueon the January 1 lien date 2. Type of property taxed along with brief description? 12. Date of last general revaluation? Lien date 2013 Real and personal property – Public utilities and railroads 13. Valuation date used for current assessment period? and intercounty pipelines are centrally assessed. Other prop- Generally, January 1st with special rules for “change of own- erty is locally assessed. ership” and “new construction”

A-6 14. Main exemptions/reliefs? Property taxes accounted for approximately 73.40% of taxes • Government properties collected at the local government level. • Properties used for non-commercial purposes, includ- 18. Any significant recent changes and important issues? ing hospitals, religious properties, charities, and non- Standardized procedures are not always followed by the as- profit schools and colleges sessors. Assessors proactively reduced values when current • - $7,000 of full market market value fell below the factored base during the recent value, or if qualified, Disabled Veterans’ Exemption economic downturn. (for 2013: $122,128 basic or $183,193 low income In late November 2012, Sen. Mark Leno, D-San Francisco, (changes annually based upon inflation factor)) announced a constitutional amendment to lower voter ap- • Personal property held for sale or lease in the ordinary proval on school district parcel taxes – a specialized form of course of business property tax – from two-thirds to 55 percent. Other legisla- • Standing Timber tive leaders, such as Senate President Pro Tem Darrell Stein- • Application Software berg, have already endorsed such a change. 15. Initial appeal process? In late November 2012, the Legislature’s budget analysts re- Locally-assessed property - Property owners can appeal by leased a report on the state’s property tax system, suggesting filing an application for changed assessment with a county that the way $55 billion a year in local property taxes are board of supervisors (sitting as a local board of equalization) distributed, adopted 30-plus years ago, may be outdated. or assessment appeals board between July 2nd and September 15th (depending on the county’s specific deadline). However, On August 5, 2013, the California Supreme Court issued its if notice of assessment was not provided to the taxpayer prior ruling on the subject case involving the validity of Property to August 1st, the assessment appeal deadline is extended to Tax Rule 474, Petroleum Refining Properties, which provides November 30th. / Assessments made outside the regular as- that refinery property consisting of land, improvements and sessment period (supplemental assessments and escape as- fixtures is rebuttably presumed to be a single appraisal unit sessments) must be appealed within 60 days from the date in determining Proposition 8 declines in value below the the notice of change in assessment is mailed. Proposition 13 adjusted base year value for property tax valu- ation purposes. State-assessed property – A utility may file a petition for re- assessment with the BOE to appeal the assessed value of a The Supreme Court held that Rule 474 is substantively valid utility’s unitary and nonunitary property. The petition must but procedurally defective under the Administrative Proce- be filed by July 20. A public hearing may be held in response dure Act (APA). Specifically, the Supreme Court held that to the petition if requested by the assesse.. the adoption of Rule 474 did not exceed the Board’s rule- making authority because the rule is consistent with appli- 16. Independent body to determine unresolved appeals? cable constitutional and statutory provisions as well as the Locally-assessed property - If the county board denies the long-standing valuation principle that the proper appraisal appeal, the taxpayer may file an action in superior court, but unit is the collection of assets that people in the marketplace only under certain circumstances. Taxpayers must exhaust normally buy and sell as a single unit. their administrative remedies before seeking relief in court. This includes filing an application for changed assessment Property Taxes staff released a letter on October 21, 2013, to with the appeals board and a claim for refund of taxes with County Assessors, County Counsels, County Boards of Su- the appropriate county official(s). An action against a county pervisors, and other interested parties soliciting information must be filed in superior court within six months after the relative to an economic impact report that staff will prepare county denies the claim for refund. However, if the county in conjunction with the proposed re-adoption of Property fails to act on the claim for refund for more than six months, Tax Rule 474, Petroleum Refining Properties. the taxpayer may consider the claim rejected and file legal On August 12, 2013, the California Supreme Court issued action without waiting for the county to act. its decision in Elk Hills Power, LLC v. State Board of Equal- State-assessed property – Special requirements apply for judicial ization (2013) 57 Cal.4th 593 (Elk Hills). This case addressed review of state-assessed property, under Cal. Rev. & Tax. § 5148. the question of how to properly value for property tax pur- poses a power plant, whose construction and operation had 17. Property tax revenue vs. other revenue? required the owner to acquire and apply certain Emission California collected approximately $53.51 billion in state Reduction Credits (ERCs). It was undisputed that the ap- and local property taxes in Fiscal Year 2010-2011, represent- plied ERCs were intangible assets which provided legal ing 28.9% of the $185.22 billion in state and local taxes col- rights that were necessary for the beneficial and productive lected. use of the power plant. (Id. at p. 619.) The issue presented At the state level, property taxes represented only 2.7% of to the Court was whether the applied ERCs were properly total taxes collected. considered by the Board in determining unitary value.

A-7 The Supreme Court concluded that, with respect to the RCLD, 13. Valuation date used for current assessment period? “the Board directly and improperly taxed the power company’s January 1st. ERCs when it added their replacement cost to the power plant’s 14. Main exemptions/reliefs? taxable value.” (Elk Hills, supra, 57 Cal.4th at p. 602.) • Government and public property Colorado • Intangible property • Nonprofit religious, charitable, and educational orga- 1. Title of Property Tax System? Property Tax. nizations 2. Type of property taxed along with brief description? Homestead Exemptions – for seniors and disabled veterans: Real and personal property (with the exception of personal 50% of the first $200,000 of actual value of the primary resi- property of a registered insurance company or financial insti- dence of a qualifying homeowner (aged 65 or older, disabled tution) – General business property is locally assessed. Oper- veteran, or the homeowner’s surviving spouse). Colo. Rev. ating property of public utilities is centrally assessed. Stat. § 39-3-203. 3. Person tax legally imposed on? Owner. See the link below to access the Assessors’ Reference Library, 4. Unit of assessment? Separate Parcel. Volume 2, Chapter 10 – Exemptions for specifics. 5. Tax rate(s) set by? County Treasurer. http://www.colorado.gov/cs/Satellite?blobcol=url 6. Current tax rate? data&blobheadername1=Content-Disposition&blobheader Current Tax Rate – Each political subdivision calculates a tax name2=Content-Type&blobheadervalue1=inline%3B+file rate based on the revenue needed from property tax and the to- name%3D%22ARL+Volume+2-October+2013.pdf%22& tal assessed value of real and personal property located within blobheadervalue2=application%2Fpdf&blobkey=id&blob the political subdivision’s boundaries. All of the tax rates of table=MungoBlobs&blobwhere=1251898776227&ssbinary the various taxing entities providing services in a tax area are =true added together to form the total tax rate. The total tax rate is Also, Addendum 10-A, page 10.29 in the Assessors’ Refer- a combination of the taxpayer’s county tax rate, city tax rate, ence Library, Volume 2 provides a reference list of categories school district tax rate, and the water and sanitation tax rate. of exempt property and corresponding statutory references. In 2011, Denver’s combined general millage or Mill Rate in- 15. Initial appeal process? cluding Denver Public Schools and Urban Drainage District Oral or written protests for real property must be postmarked was 71.307 mills or a tax rate of $0.071307 for every $1 of st or delivered to the assessor on or before June 1 . Colo. Rev. assessed value. Stat. § 29-5-121. Personal property protests must be post- Assessment Ratio – Residential real property is determined marked or delivered to the assessor by June 30th. Colo. Rev. in accordance with Colo. Rev. Stat. § 39-1-104.2, which set Stat. § 39-5-122(2) forth an assessment ratio of 7.96% for 2011 and 2012. For The assessor must make a decision on the protest and mail a 2013 and after the assessment ratio is to be set annually by Notice of Determination by the last regular working day in the state legislature. The assessment rate for most other types June for real property and by July 10th for personal property. of property, including personal property, is 29% of actual Any county may elect to extend the Notice of Determination value. Colo. Rev. Stat. § 39-1-104. mailing date from the last regular working day in June to the 7. Frequency of adjustment of tax rate(s)? Annually. last regular working day in August. 8. Tax collected by? Local government. No tax is collected Centrally assessed property must be appealed to the Board of at the state level. Assessment Appeals (BAA) or Denver district court. 9. Assessor responsible for assessments? Local assessors (in 16. Independent body to determine unresolved appeals? the sixty-four counties) If dissatisfied with the assessor’s decision, a taxpayer may ap- 10. Basis of valuation? peal to the county board of equalization by July 15th for real Residential property is valued using only the market ap- property and by July 20th for personal property. Colo. Rev. proach to value. Most non-residential property, including Stat. § 39-8-106. personal property, is valued by considering the market ap- If still dissatisfied after the county board’s decision, a tax- proach, the cost approach, and the income approach to value. payer may appeal to an arbitrator, district court, or the BAA 11. Frequency of general revaluations? within 30 days of the date the decision was mailed. Real property is re-valued every two years. Personal property 17. Property tax revenue vs. other revenue? is re-valued annually. Colorado collected approximately $8 billion in state and lo- 12. Date of last general revaluation? cal property taxes in 2010, representing 39% of the $20.5 2013. Real property is valued in the odd-number year. billion in total state and local taxes collected.

A-8 At the state level, property taxes represented 0% of total taxes true and actual (fair market) value. However, assessor may collected. add a 25% assessment penalty if a taxpayer files a late Per- Property taxes accounted for approximately 67.33% of taxes sonal Property Declaration, or an audit reveals that the tax- collected at the local government level. payer omitted personal property from the declaration. 18. Any significant recent changes and important issues? 7. Frequency of adjustment of tax rate(s)? Annually. Negotiated Personal Property Tax Incentives - A taxpayer 8. Tax collected by? who establishes a new business facility can negotiate with a Municipal/Local government, including counties, cities, and county for an annual incentive payment or credit. Previously, special taxing districts the maximum amount of the negotiated incentive payment 9. Assessor responsible for assessments? Local assessor. or credit was limited to 50% of the amount of county taxes due on the taxable personal property located at or within the 10. Basis of valuation? True and actual (fair market) value operation of the new business facility for the current prop- 11. Frequency of general revaluations? erty tax year. Now that ceiling has been increased to the full Real property must be re-valued at least every 10 years Conn. amount of county personal property taxes. H.B. 12-1029, Gen. Stat. § 12-62(b). signed into law on March 24, 2012. 12. Date of last general revaluation? Refunds: Personal property refunds may be given if the Generally, October 1, 2009 for real property, Conn. Gen. Stat. § state’s revenues exceed the limit on revenue in state Con- 12-62(b)(3), but localities may have initiated revaluations since stitution. then. For instance, the Town of Middlebury’s last revaluation was October 1, 2011. The City of Norwalk has commenced its Octo- Connecticut ber 1, 2013 revaluation. The Town of Monroe’s next revaluation 1. Title of Property Tax System? Property Tax. is scheduled for October 1, 2014. Each town is able to schedule 2. Type of property taxed along with brief description? it’s revaluation independent of other jurisdictions or the state as Real and personal property (including personal property of long as they get them in approximately every 5 years. Some have non-residents if property is in the state for 3 months of the deferred more than once so that the cycle is 6 or 7 years. year) – All property is locally assessed. The state administers 13. Valuation date used for current assessment period? Oc- a special personal property tax for certain telecommunication tober 1st for both real and personal property providers. 14. Main exemptions/reliefs? 3. Person tax legally imposed on? Owner. Low income abatement program (if tax exceeds 8% of tax- 4. Unit of assessment? Separate Parcel. payer’s income), Conn. Gen. Stat. § 12-124a(a) 5. Tax rate(s) set by? Family personal property Municipal/Local government, including counties, cities, and Government or public property special taxing districts Utility property 6. Current tax rate? Current Tax Rate - Local property tax mill rates for fiscal Non-profit and religious organizations year 2012-2013 are based upon the 2011 grand list and are 15. Initial appeal process? available in a document at http://www.ct.gov/opm/cwp/view. A taxpayer who disagrees with an assessor’s determination asp?a=2987&q=385976. These are the most current mill rates regarding an assessment has the right to submit a written and are reflected in each ’s July 2012 tax bills. – request for a hearing to a local board of assessment appeals. The lowest combined millage rate of 11.001 is in Greenwich. Conn. Gen. Stat. § 12-111. The date for submitting a hearing The highest mill rate of 74.29 is in Hartford. The average request is either February 20th or March 20th, depending on millage rate (of those available) is approximately19.54. when the grand list is completed. Hearings occur in March After the board of assessment appeals finalizes determina- or April. Boards of assessment appeals also meet at least once tions for hearings held in March or April, a taxing jurisdic- during the month of September to hear appeals related to tion determines the amount of property tax revenue that it motor vehicle assessments. Conn. Gen. Stat. § 12-112. A tax- will need for the upcoming fiscal year and sets a mill rate. payer must appear at a hearing before the board of assess- Multiplying the mill rate (the basis for which is a thousandth ment appeals, or must ensure that someone appears on the of a dollar) by a property’s net assessment results in the prop- taxpayer’s behalf. Conn. Gen. Stat. § 12-113. erty tax. The net assessment of a property is the assessment Protest is mandatory to file a Superior Court tax appeal. minus all exemptions for which a taxpayer qualifies. 16. Independent body to determine unresolved appeals? Assessment Ratio – With the exception of certain classified If a taxpayer disagrees with a determination of a board of land, all property (regardless of class) is assessed at 70% of assessment appeals, the taxpayer may file an appeal with the A-9 superior court for the judicial district in which the property from $100 to $250 and maintains the maximum prison term is located. Conn. Gen. Stat. § 12-117a. of up to 30 days. Public Act 12-80 (effective October 1, 2012) 17. Property tax revenue vs. other revenue? Filing Deadline Waivers – A new law allows certain tax- Connecticut collected approximately $9 billion in state and payers to receive property tax exemptions even though they local property taxes in 2010, representing 42% of the $21.41 missed the statutory filing deadlines for them. The exemp- billion in state and local taxes collected. tions are for manufacturing machinery and equipment, com- No taxes are collected at the state level. mercial trucks, and non-profit organization property. It also allows a taxpayer to receive a refund of the penalty assessed Property taxes accounted for approximately 98.6% of taxes for failing to file a personal property declaration even though collected at the local government level. the taxpayer missed the deadline for filing the declaration. 18. Any significant recent changes and important issues? Public Act 12-2, JSS §§ 3-12 (effective upon passage) Exemptions – Beginning with the October 1, 2011 assess- Revaluation Phase-In for Decreases in Property Values - ment year, manufacturing machinery and equipment, in- Allows municipalities to phase in post-revaluation decreases cluding machinery and equipment used in connection with in property values using methods that are comparable to biotechnology, is exempt from Connecticut property taxes those the law allows for phasing in increases in property val- regardless of when acquired. The requirement that the ma- ues. Public Act 12-2, JSS §§ 168-170 (effective July 1, 2012 and chinery and equipment be new has also been eliminated. Act applicable to assessment years starting October 1, 2012) 61 (H.B. 6652), Laws 2011 Tax Bills – Effective October 1, 2011, and applicable to as- Delaware sessment years starting on or after that date, local Connecticut 1. Title of Property Tax System? Property Tax. property tax collectors may send tax bills and statements to tax- 2. Type of property taxed along with brief description? payers electronically so long as the taxpayer consents to elec- tronic receipt. The community must also post its email address Real property. [Personal property exempt]. – All real prop- on its website and establish procedures to ensure that taxpayers erty is locally assessed. receiving electronic bills and statements also receive the com- 3. Person tax legally imposed on? munity’s return email address. Act 185 (H.B. 5256), Laws 2011 Generally, tax is imposed on the owner. However, for leased Partially Completed Structures – A new law explicitly al- property, tenant is responsible for property tax (must pay it to lows towns to levy property taxes on partially completed person entitled to rent, unless other agreement exists). Tenant buildings and structures. Public Act 12-157, (effective October can deduct same amount out of rent. No set valuation date. 1, 2012 and applicable to assessment years starting on or after 4. Unit of assessment? Separate Parcel. that date) 5. Tax rate(s) set by? Counties, cities, and special taxing districts Jeopardy Tax Collection – Changes the process by which 6. Current tax rate? local tax collectors take action to collect taxes that are as- Kent County – Generally, property is assessed at 60% of sessed but not yet due (jeopardy tax collection). Prior law its true value. For the 2012-2013 fiscal year the highest required tax collectors to take immediate action to collect a combined tax rate was $3.1352 per $100, while the lowest tax that was assessed but not yet due when they believed that was $1.6271 per $100 http://dedo.delaware.gov/dedo_pdf/ payment might be jeopardized by delay. / The act instead re- NewsEvents_pdf/publications/2012-2013_Property_Tax_ quires that they take such action only if they determine, after Report.pdf. All property classified as Commercial C-2 exercising due diligence, the payment will be delayed. The had a tax rate of $1.59 per $100 of taxable value. However, act also requires local tax collectors to notify the (1) taxpayer some cities and towns had differing assessment ratios and/ and (2) municipality’s chief elected official or chief executive or rates: officer when beginning a jeopardy tax collection proceeding. • The City of Camden charges $0.96 per $100 of tax- Public Act 12-26, (effective October 1, 2012 and applicable to able value for senior citizens. assessment years starting on or after that date) • The City of Dover taxes property at 100% of its 2010 Personal Property Tax Audit Penalty – By law, a local tax assessment. assessor can compel a taxpayer to testify or produce certain • The Town of Kenton taxes property at 100% of its books and records as part of a personal property tax audit. 1992 assessment. Under prior law, taxpayers who failed to appear at the audit, • The Town of Little Creek taxes senior citizens at $0.30 refused to answer any pertinent question, or failed to pro- per $100 of assessment. duce the records were subject to a fine of up to $100, up to • The rate for Houston was the 2010-2011 rate. 30 days in prison, or both. A new law classifies this crime as • The City of Milford taxes property at 100% of its 2002 a class D misdemeanour, which increases the maximum fine assessment.

A-10 • The Town of Smyrna taxes property at 100% of its • The City of Seaford taxes property at 50% of its 2008 2006 assessment. assessment. • Each property is charged an additional $276 base tax • The Town of Slaughter Beach taxes property at 100% year per year for removal. of its 1974 assessment.

New Castle County – Generally, property is assessed at 100% 7. Frequency of adjustment of tax rate(s)? Annually. Del. of true value. For the 2012-2013 fiscal year the the highest Code Ann. tit. 9, § 8101. combined tax rate was $4.2691 per $100, while the lowest 8. Tax collected by? County government was $1.8670 per $100 http://dedo.delaware.gov/dedo_pdf/ 9. Assessor responsible for assessments? County assessor NewsEvents_pdf/publications/2012-2013_Property_Tax_ Report.pdf. . 10. Basis of valuation? • Residents of the “Ardens” do not own their property, All real property subject to assessment is assessed at its true but hold 99-year . Taxes are assessed on square value in money. Del. Code Ann. tit. 9, § 8306 feet of land, not value of house. 11. Frequency of general revaluations? • The Town of Elsmere charges an additional $275 for No provision for periodic review. each residential and commercial unit. 12. Date of last general revaluation? • Delaware City has a City Park Tax of 0.0500 which The date of last reassessment varies by county: Kent county, was added to the city rate. 1987; New Castle county, 1983; Sussex county, 1974. 13. Valuation date used for current assessment period? Sussex County – Generally, property is assessed at 50% of No specific state-wide date. While assessed annually, the val- true value. For the 2012-2013 fiscal year the highest com- uation date varies by county and municipality: Kent county, bined tax rate was $6.5311 per $100, while the lowest was 1987; New Castle county, 1983; Sussex county, 1974. $3.5079 per $100 http://dedo.delaware.gov/dedo_pdf/New- sEvents_pdf/publications/2012-2013_Property_Tax_Re- 14. Main exemptions/reliefs? port.pdf.. There was also a county capitalization tax of $3.00. Government property However, some cities and towns had differing assessment Property used for educational, religious, or charitable purposes ratios and/or rates: Exemption for seniors ($5,000 of assessed value for those • The Town of Bethany Beach taxes property at 100% of with incomes of $3,000 or less who have owned and occu- its 2002 assessment. pied property in the state for at least 3 years) • The Town of Blades taxes property at 50% of its 1989 No homestead exemption assessment. 15. Initial appeal process? • The Town of Dagsboro taxes property at 100% of its Appeals are initially made to the county’s Board of Assess- 1994 assessment. ment Review. In Kent County appeals are made between • The Town of Delmar taxes property at 100% of its April 1st and April 15th of each year; in Sussex County, be- 2008 assessment. tween February 15th and March 1st of each year; in New Cas- • The Town of Dewey Beach taxes property at 100% of tle County, between March 15th and April 1st of each year. the 1974 county assessment. (used only for beach re- Del. Code Ann. tit. 9, § 8311. plenishment) 16. Independent body to determine unresolved appeals? • The Town of Laurel taxes property at 100% of its 1974 Appeals from decisions of any Board of Assessment Review assessment. to the superior court of the county in which the person re- • The Town of Lewes taxes property at 50% of its 2000 sides must be made within 30 days of the postmark date after assessment. receiving notice of the decision. Del. Code Ann. tit. 9, § 8312. • The City of Milford taxes property at 100% of its 2002 assessment. 17. Property tax revenue vs. other revenue? • The Town of Millsboro taxes property at 100% of its Delaware collected approximately $664 million in state and 1992 assessment. local property taxes in 2010, representing 18.57% of the • The Town of Millville taxes property at 100% of its $3.58 billion in state and local taxes collected. 1974 assessment. No taxes are collected at the state level. • The town of Milton taxes property at 100% of its 2009 Property taxes accounted for approximately 82% of taxes col- assessment lected at the local government level. • The Town of Ocean View taxes property at 100% of 18. Any significant recent changes and important issues? its 2007 assessment. Exemptions – Effective July 25, 2011, religious, educational, • The Town of Rehoboth Beach taxes property at 50% charitable, or other specified organizations that own property of its 1968 assessment. in New Castle County are not automatically exempt from

A-11 county property tax and must apply for such exemption. The At the state level, property taxes represented 0% of total taxes application for property must be submitted to collected. the county assessment division by March 1st of the preceding Property taxes accounted for approximately 36.96% of taxes fiscal year. If the property is acquired after March 1st, the ap- collected at the local government level. plication must be submitted within 30 days of the property 18. Any significant recent changes and important issues? acquisition. Ch. 11 (H.B. 31), Laws 2011

District of Columbia Florida 1. Title of Property Tax System? Property Tax. 1. Title of Property Tax System? Property Tax. 2. Type of property taxed along with brief description? 2. Type of property taxed along with brief description? Real property and tangible personal property. Real property, personal property, and intangibles – General 3. Person tax legally imposed on? Owner. business property is locally assessed. Railroad and private 4. Unit of assessment? Separate Parcel. carline operating property are the only property types that 5. Tax rate(s) set by? are centrally assessed. Fla. Admin. Code Ann. r. 12D-2.002. Council of the District of Columbia. D.C. Code § 47-501. 3. Person tax legally imposed on? Owner. 6. Current tax rate? 4. Unit of assessment? Separate Parcel. Varies amongst classes of property from .85% to 10%. http:// 5. Tax rate(s) set by? otr.cfo.dc.gov/otr/cwp/view,a,1330,q,594394.asp Local governments, including cities, counties, school boards, 7. Frequency of adjustment of tax rate(s)? and special districts. Each year, usually in August and Sep- Annually for real property, but varies for personal property. tember, locally elected officials in each jurisdiction set a mill- D.C. Code § 47-501. age or tax rate for the upcoming fiscal year which usually st 8. Tax collected by? begins on October 1 . Office of Tax and Revenue/DC Treasurer 6. Current tax rate? 9. Assessor responsible for assessments? For 2012, the highest county combined millage rate was Assessors are appointed by the mayor 23.442, the lowest was 9.7536, and the average was 17.3241 http://dor.myflorida.com/dor/property/resources/data.html. 10. Basis of valuation? Several types of local governments can levy property taxes to Open market value. D.C. Mun. Regs. § 306. support the services they provide to people in a county, city, 11. Frequency of general revaluations? or other specific area. They are called taxing authorities and Real property is updated annually include counties, municipalities, school districts, and special 12. Date of last general revaluation? 2012. districts such as water management, fire protection, mos- 13. Valuation date used for current assessment period? quito protection or other special districts. Before adopting January 1st for real property and July 1st for personal property. a budget and setting a millage (tax) rate, taxing authorities D.C. Mun. Regs. § 306; D.C. Code § 47-1523. must hold public hearings and follow the statewide truth in millage (TRIM) requirements. Millage rates for each juris- 14. Main exemptions/reliefs? diction are uniform across all property types. Religious and charitable properties are fully exempted Homestead exemption reduces the primary residence prop- 7. Frequency of adjustment of tax rate(s)? Annually. erty value by $69,100. 8. Tax collected by? County Tax Collector. Tax relief is also available to seniors 65 and older with ad- 9. Assessor responsible for assessments? County property justed gross income of $125000or less, as well as permanently appraiser and totally disabled taxpayers with adjusted gross income of 10. Basis of valuation? Market value. $ 125000 or less. 11. Frequency of general revaluations? 15. Initial appeal process? Annually, with physical inspection every 5 years. Fla. Stat. Initial appeals are made to the local assessor Ann. § 193.023(2) 16. Independent body to determine unresolved appeals? 12. Date of last general revaluation? January 1, 2013 Unresolved appeals go to the Real Property Tax Appeals Commission 13. Valuation date used for current assessment period? st 17. Property tax revenue vs. other revenue? January 1 . Fla. Stat. Ann. § 192.042 Washington, D.C. collected approximately $1.86 billion in 14. Main exemptions/reliefs? state and local property taxes in 2010, representing 36.96% Educational institutions of the $5.03 billion in state and local taxes collected. Homestead exemption - $50,000 limit A-12 Assessment increases limited to 3% annually for owners of of certain businesses. Section 16, 2012-193, L.O.F. (CS/HB homestead property and 10% annually for owners of other 7097 3rd Eng.) property Taxpayer Rights: Value Adjustment Board Hearing – Pro- Local option additional homestead exemption for low in- vides that a taxpayer has a right to have a hearing before come seniors of up to $50,000 or value of property if just the Value Adjustment Board rescheduled if the hearing is value is less than $250,000. not commenced within a reasonable time, not to exceed two Personal property (first $25,000) hours after the scheduled time. Section 2, 2012-193, L.O.F. Property used for charitable, religious, scientific, or literary (CS/HB 7097 3rd Eng.) purposes Rules and Regulations: The Florida Department of Rev­enue Tangible personal property owned solely for personal use as continues to clarify the rules and regulations for value adjust- household goods by the owner is wholly exempt ment boards. Value adjustment boards cannot refuse to accept Government property immune from taxation. a petition or require written authorizations from licensed tax 15. Initial appeal process? representatives or agents who file a petition with the board. Any taxpayer who objects to the assessment may request an informal conference with the property appraiser or a mem- Georgia ber of the appraiser’s staff, although such a conference is not 1. Title of Property Tax System? Property Tax. a prerequisite to formal administrative or judicial review. A taxpayer who objects to the assessment may file a petition 2. Type of property taxed along with brief description? requesting review by the local value adjustment board. Fla. Real and personal property – General business property is Stat. §§ 194.011, 194.015. locally assessed. Airlines, railroad equipment companies, spe- The petition must be filed within 25 days from the mailing of cial franchises, and public utilities are centrally assessed. the notice of assessment. Fla. Stat. § 194.011. Intangible property is not taxed, and hasn’t been since 1995, although constitutional authority exists to do so. A taxpayer who objects to the assessment may file a petition requesting review by the local value adjustment board. Fla. 3. Person tax legally imposed on? Owner. Stat. §§ 194.011, 194.015 4. Unit of assessment? Separate Parcel. 16. Independent body to determine unresolved appeals? 5. Tax rate(s) set by? Circuit court. Fla. Stat. § 194.036 State, county, cities, schools and towns 17. Property tax revenue vs. other revenue? 6. Current tax rate? The is an annual tax levied by local govern- In 2012, the average county and municipal millage rate is 30 ments based on the value of real and tangible personal prop- mills. Additionally, the state millage rate in each county is erty as of January 1 of each year. Florida’s constitution pro- 0.25 mills. The attached document “2012 Georgia County hibits the state government from levying an ad valorem tax. Ad Valorem Tax Digest Millage Rates” contains millage rates for each county, which includes the school rate, county in- In 2012, Florida levied approximately $24.175 billion in corporated rate, city rates, and unincorporated county rates local property taxes. State-wide, local ad valorem taxes ac- https://etax.dor.ga.gov/ptd/cds/csheets/LGS_Georgia_ counted for 75.6% of all taxes collected at the county level. In County_Ad_Valorem_Tax_Digest_Millage_Rates_by_Tax- 2012, local school districts received 35.54% of their financial ing_Jurisdiction_PTSR006OD_2012.pdf support from state sources, 46.32% from local sources, and 18.14% from federal sources. The state portion of the property tax is scheduled to be phased out at the rate of 0.05 mills per year beginning in 2011, when 18. Any significant recent changes and important issues? the state tax rate was 0.25 mills and ending in 2016, when Appeals – Applicable to petitions filed with value adjust- the millage rate will be zero. Ga. Code Ann. § 48-5-8. ment boards on or after July 1, 2011, Florida requires a peti- Taxable is assessed at 40% of its fair market tioner to pay a specified amount of property tax before April value. Ga. Code Ann. § 48-5-7. 1. The value adjustment board will deny the petition by writ- ten decision by April 20th if the petitioner fails to make the 7. Frequency of adjustment of tax rate(s)? Annually. required payment. Ch. 181 (H.B. 281), Laws 2010 8. Tax collected by? Educational Property Exemption – Provides an exemption The county tax commissioner is responsible for collecting from ad valorem taxation for certain property used for edu- property taxes for the county, school and State. And in some cational purposes. Sections 25 and 33, 2012-193, L.O.F. (CS/ counties the tax commissioner may collect property taxes for HB 7097 3rd Eng.) the city. Periodic Review – Allows the Department of Revenue dis- 9. Assessor responsible for assessments? County. cretion in determining whether to review the assessments 10. Basis of valuation? Fair market value. A-13 11. Frequency of general revaluations? the receipt of the arbitration appeal within 10 days. The tax- The real property valuation cycle is every 3 years. The county payer must submit a certified appraisal of the subject prop- appraisal staff must prepare annual assessments of real prop- erty within 45 days of the filing of the notice of appeal which erty. Ga. Comp. R. & Regs. 560-11-2-.28. However, there are the board of assessors may accept or reject. If the taxpayer’s no provisions requiring reappraisal or physical inspection of appraisal is rejected the board of assessors must certify the property for appraisal purposes at specified intervals. appeal to the county clerk of superior court for arbitration. 12. Date of last general revaluation? Varies by assessing ju- The arbitration is authorized by the judge and a hearing is risdiction. scheduled within 30 days. The arbitration will issue a deci- sion at the conclusion of the hearing, which is a final and 13. Valuation date used for current assessment period? which may not be appealed further. If the taxpayer’s value st January 1 . is determined by the arbitrator to be the value, the county is 14. Main exemptions/reliefs? responsible for the clerk of the superior court’s fees, if any, Governmental and public property; Homesteads; Additional and the fees and costs the arbitrator. If the board of assessors’ homesteads for seniors; Inventory; Nonprofit, charitable, sci- value is determined by the arbitrator to be the value, the tax- entific, religious, and educational organizations payer is responsible for the clerk of the superior court’s fees, if any, and the fees and costs the arbitrator. 15. Initial appeal process? Appeal to county board of equalization, hearing officer, or to 17. Property tax revenue vs. other revenue? a binding arbitrator; must be filed with 45 days from mailing Georgia collected approximately $10.59 billion in state and of assessment. Ga. Code Ann. § 48-5-311. The taxpayer’s ap- local property taxes in 2010, representing 35.18% of the $30 peal may be based on taxability, value, uniformity, and/or the billion in state and local taxes collected. At the state level, denial of an exemption. The written appeal is filed with the property taxes represented less than 1% of total taxes col- County Board of Tax Assessors. lected. Property taxes accounted for approximately 68.54% of taxes 16. Independent body to determine unresolved appeals? collected at the local government level. The taxpayer must select one of the three options below when filing an appeal: 18. Any significant recent changes and important issues? HB 48 (O.C.G.A § 48-5-48.2) - This bill adds a second level Appeal to the County Board of Equalization: The appeal to the existing “Freeport exemption” for ad valorem taxation. based on value, uniformity, taxability or denial of exemption The Level 2 Freeport exemption covers goods, wares, and is filed by the property owner and reviewed by the board of merchandise of every character and kind constituting the assessors. The board of assessors may change the assessment inventory of a business which would not otherwise qualify and send a new notice. The property owner may appeal the for a Level 1 Freeport exemption. The Level 2 exemption assessment in the amended notice within 30 days. This sec- is structured in a similar manner as the Level 1 exemption ond appeal made the property owner or any initial appeal in that the local governing authority has discretion to grant which is not amended by the board of assessors is automati- or deny the exemption for the applicable tangible personal cally forwarded to the Board of Equalization. A hearing is property and can determine the percentage of relief (if any) scheduled and conducted and the Board of Equalization to be granted from ad valorem taxation. With respect to the renders its decision at the conclusion of the hearing. If the Level 1 Freeport exemption the bill also provides that cer- taxpayer is still dissatisfied, an appeal to Superior Court may tain foreign merchandise in transit may be exempted from ad be made. valorem taxation. Appeal to a Hearing Officer: The taxpayer may appeal to a Hearing Officer, who is a state certified general real property Hawaii or state certified residential real property appraiser and is ap- 1. Title of Property Tax System? Property Tax. proved as a hearing officer by the Georgia Real Estate Com- mission and the Georgia Real Estate Appraiser Board, when 2. Type of property taxed along with brief description? the issue of the appeal is the value or uniformity of value Real property. [Personal property exempt]. – All property is of non-homestead real property, but only when the value is locally assessed within the four counties. equal to or greater than $1,000,000. If the taxpayer is still 3. Person tax legally imposed on? dissatisfied with the decision of the hearing officer, an appeal Owners. See, e.g., ROH 8-2.1; MCC 3.48.130; HCC 19-27; to Superior Court may be made. KCC 5A-7.1 (in Kauai, assessed to lessee for leaseholds of 15 Appeal to an Arbitrator: An appeal of value may be filed years or more) . [ note that Hawaii law gives the counties the to Arbitration by filing your appeal specifying Arbitration authority to administer the property taxes in their jurisdic- with the board of assessors within 45 days of the date of the tion, thus we are deleting references to the HRS where it is notice. The Board of Assessors must notify the taxpayer of no longer applicable

A-14 The Real Property Tax laws are found here: 16. Independent body to determine unresolved appeals? Revised Ordinances of Honolulu (“ROH”) Generally, a taxpayer or a county may appeal directly to the Kauai County Code (“KCC”) Hawaii Tax Appeal Court (TAC) without appealing to an Maui County Code (“MCC”) administrative body established by county ordinance. Haw. Hawaii County Code (“HCC”) Rev. Stat. § 232-16. A decision of a board of review may also be appealed to the TAC. Haw. Rev. Stat. § 232-17. An ap- 4. Unit of assessment? Separate Parcel. peal to the TAC must be submitted in writing no later than 5. Tax rate(s) set by? Counties. 30 days after the decision of a board of review or county 6. Current tax rate? administrative body is filed and must be accompanied by Rates are determined at the county level and depend on the cost of the appeal, not to exceed $100. Haw. Rev. Stat. property type ranging anywhere from $0 per $1,000 for §§ 232-17, 232-22. A notice of appeal must be served on public service property in Honolulu County to $15.50 per the director of taxation and, in the case of an appeal from $1,000 for time share property in Maui County a decision involving the county as a party, the real property For Honolulu County: http://www.realpropertyhonolulu. assessment division of the county involved. Haw. Rev. Stat. com/content/rpadcms/documents/2012/12_rates.pdf. § 232-16. For Kauai County: http://www.kauai.gov/Government/ A decision of the TAC may be appealed to the Hawaii Inter- Departments/Finance/RealProperty/TaxRates/tabid/102/ mediate Appellate Court by filing a written notice of appeal Default.aspx and depositing the costs of appeal with the TAC within 30 For Maui County: http://www.mauicounty.gov/index. days after the decision of the TAC is filed. Haw. Rev. Stat. aspx?NID=755 § 232-19. For Hawaii County: http://www.hawaiipropertytax.com/ Small claims appeals: A small claims procedure is available in Forms/HtmlFrame.aspx?mode=Content/TAXRATES.htm the tax appeal court for claims in which the total tax liabil- 7. Frequency of adjustment of tax rate(s)? ity, not including penalties and interest, is less than $1,000. st th Annually – The fiscal year runs from July 1 through June 30 Haw. Rev. Stat. § 232-5. 8. Tax collected by? County. However, for Maui and Hawaii counties, an appeal must first 9. Assessor responsible for assessments? County. be filed with the Real Property Tax Division Board of Re- view (Maui Ord. 3900 (2011)) for Maui and the Tax Board 10. Basis of valuation? of Review for Hawaii county. http://www.hawaiipropertytax. Fair market value. See, e.g., ROH 8-7.1(a); KCC 5A-8.1; com/Forms/HtmlFrame.aspx?mode=Content/Forms_Ap- HCC 19-53 peals.htm&LMparent=237 11. Frequency of general revaluations? 17. Property tax revenue vs. other revenue? Property is valued and assessed annually. See, e.g., ROH Hawaii collected approximately $1.4 billion in state and lo- 8-7.1(a); KCC 5A-8.1; HCC 19-53. cal property taxes in 2010, representing 21.11% of the $6.6 12. Date of last general revaluation? billion in state and local taxes collected. At the state level, Varies by assessing jurisdiction property taxes represented 0% of total taxes collected. 13. Valuation date used for current assessment period? Property taxes accounted for approximately 79.09% of taxes October 1 in Honolulu county (ROH 8-6.2) collected at the local government level. October 1 for Kauai county (KCC 5A-6.2) 18. Any significant recent changes and important issues? January 1 in Maui county - http://www.mauicounty.gov/in- Appeals : Hawaii taxpayers appealing real property tax assess- dex.aspx?NID=1111 ments must first obtain a decision from a local administrative January 1 for Hawaii county (HCC 19-47) body established by county ordinance before appealing to the 14. Main exemptions/reliefs? tax appeal court, if required by the county. In such circum- Governmental and public property; Homesteads; Special stances, the notice of appeal to the tax appeal court must be homesteads for senior citizens; Nonprofit, religious, chari- accompanied by a copy of the decision from the administra- table, and educational organizations; and Disabled persons tive body. Act 106(Haw. Leg. 2011) ; effective June 14, 2011 15. Initial appeal process? Small Claims Appeals: Hawaii has enacted legislation to pro- An informal appeal may be directed to the assessor/appraiser vide that pre-trial discovery is prohibited in small claims tax assigned to the parcel. A formal appeal may be lodged with appeals without prior written approval of the court and that the county board of review or an appeal may be filed with the costs and fees awarded to the prevailing party are limited to State Tax Appeal Court. However, Maui and Hawaii coun- fees paid directly to the court in the course of conducting the ties require an appeal be first lodged with the local county appeal at issue. Where an appeal from a decision involves a board of review. See #16 below. county as a party, notice of the appeal and a copy of the state-

A-15 ment is to be served on the real property assessment division 8. Tax collected by? of the county involved. Act 167 (Haw. Leg. 2011) Taxes are collected at the county level for locally assessed Agricultural Land (Honolulu): Applicable to tax years begin- property. Taxes are collected at the state level for centrally ning on and after July 1, 2013, a Honolulu ordinance revises assessed property. Apportionment is only for public utilities the availability of real property tax incentives provided by and railroads, which are subject to state assessment. the city for dedication of agricultural land to agricultural 9. Assessor responsible for assessments? use. Land may only be approved for agricultural use dedica- County assessors assess locally assessed property. State asses- tion for five-year or 10-year periods, where formerly a one- sors assess centrally assessed property. year approval period was allowed. Further, if dedicated land 10. Basis of valuation? is unable to be maintained as agricultural land throughout Market value; however, “the actual and functional use shall the entire dedication period, the owner may file a land use be a major consideration.” This requirement to consider ac- change cancellation. Definitions and clarifying language per- tual use is in statute and was intended to prevent placing taining to agricultural land use dedication are added. ROH higher values on real property based on a highest and best 8-7.3 amended by Ordinance 11-26, Honolulu City Council use standard if the current use was valued less. (2011) 11. Frequency of general revaluations? Act 326 (Haw. Leg. 2012): Requires each county to provide Revaluations occur annually, and are supplemented by reap- the department of taxation with information necessary and praisal including physical inspection at least every 5 years for for department to provide the counties with information locally assessed property. Idaho Code § 63-314. necessary for the enforcement of county real property tax laws. 12. Date of last general revaluation? Jan. 1, 2013 13. Valuation date used for current assessment period? st Idaho January 1 of current year. Idaho Code § 63-205. 1. Title of Property Tax System? Property Tax. 14. Main exemptions/reliefs? Charitable, educational, and religious property; Business 2. Type of property taxed along with brief description? inventory; Homesteads [Homeowner’s exemption for the All real property and most personal property are locally as- lesser of (1) a maximum exemption amount that changes an- sessed. The Idaho State Tax Commission is responsible for nually ($83,974 for 2012), or (2) 50% of the market value of the appraisal, assessment, and taxation of certain public utili- the improvements if occupied as a primary residence]; In- ties. Idaho Code § 63-401. tangibles; Tangible personal property items purchased on or 3. Person tax legally imposed on? Owner. after 1/1/2013 costing $3,000 or less; On and after 1/1/2013 4. Unit of assessment? Separate Parcel. each taxpayer’s personal property located in a county is ex- empt up to $100,000. 5. Tax rate(s) set by? Taxing districts - Many kinds of taxing districts exist in 15. Initial appeal process? Idaho. Some, like cities and counties, levy taxes to provide Locally assessed property: A taxpayer may appeal a county as- a wide range of services. Other taxing districts levy taxes for sessor’s valuation or denial of an exemption to the county specific purposes like highways, schools, or fire protection. board of equalization. Idaho Code § 63-501A. An appeal of a Each property is located within several independent taxing county board of equalization’s decision may be taken to the districts. Taxing districts levies constrained by Idaho Code § Board of Tax Appeals (BTA) within 30 days. Idaho Code § 63-802. State oversight and review of all levies provided in 63-511. Idaho Code § 63-808 to 809. Centrally assessed property: Public utilities and railroad car 6. Current tax rate? companies may appeal an assessment by the Commission or In 2012, the average urban rate was 1.631%. The average an assessment of other property in the state by filing a peti- rural rate was 1.048% http://tax.idaho.gov/i-1129.cfm. The tion for a formal hearing with the Commission. Idaho Code state tax on locally assessed property has been suspended § 63-407. since 1965 and is not permitted as long as the is in 16. Independent body to determine unresolved appeals? place. Idaho Code § 63-801. A BTA decision may be appealed to the county district court. 7. Frequency of adjustment of tax rate(s)? Idaho Code § 63-3812. Annually Based on caps in Idaho Code § 63-802, system is 17. Property tax revenue vs. other revenue? budget driven, not based on fixed rates or rates that may be Idaho collected approximately $1.3 billion in state and lo- arbitrarily raised or lowered. This would be prevented by the cal property taxes in 2010, representing 30.15% of the $4.34 budget caps which prevail over rate limits found elsewhere billion in state and local taxes collected. At the state level, in law. property taxes represented 0% of total taxes collected.

A-16 Property taxes accounted for approximately 94% of taxes col- dential class is 10% of fair market value]. The ratio for Cook lected at the local government level. County is now 25% for standard . 18. Any significant recent changes and important issues? 7. Frequency of adjustment of tax rate(s)? Annually. Exemptions : The Idaho property tax exemption for new capi- 8. Tax collected by? tal investment property has been amended to add that the Municipal/Local (county) government. There are approxi- exemption is allowed whether property is acquired before, mately 6,000 local government units (e.g., municipalities, during, or after the qualifying period of 84 months. (Ch. townships, counties, schools, and park districts) use property 10 (H.B. 13), Laws 2011, effective retroactively to January 1, tax to finance the majority of services they provide. 2010) Exemptions : Section 63-602, Idaho Code, is being amended 9. Assessor responsible for assessments? to require all applications be submitted annually at a cer- Generally, the local assessor. 35 Ill. Comp. Stat. 200/9-70. The tain time, permit exceptions from application for exemp- Department of Revenue assesses and allocates to local taxing tions such as household goods and to provide for approval districts the value of all pollution control facilities, low sulfur or disapproval and a procedure for appeal. H.B. 356, Laws dioxide emission coal-fuelled devices, and property owned or 2012. Section 53-602KK, Idaho Code, was amended to ex- used by railroad companies operating within Illinois, except empt all items of personal property purchased on or after noncarrier real estate. 35 Ill. Comp. Stat. 200/17-35. January 1, 2013 and costing $3,000 or less. This code section The chief county assessment officer ensures that assessment was also modified to eliminate the trigger mechanism to the levels are uniform and at the legal assessment level by apply- $100,000 exemption allowing it to become effective for tax ing a uniform percentage increase or decrease to all assess- year 2013 and to include operating property in the group of ments in the jurisdiction (i.e., assessments are “equalized”). taxpayers eligible for the exemption. H.B. 315, Laws 2013. County boards of review determine whether local assessing Occupancy Tax: If you buy or build a home or commercial officials have calculated assessed values correctly, equalize property that no one has ever occupied and move in after Jan. assessments within the county, assess any property that was 1, you must pay an occupancy tax. The tax is on the prorated omitted, decide if homestead exemptions should be granted, value of the improvements for the portion of the year since and review non-homestead exemption applications. first occupancy. 10. Basis of valuation? Fair market value Illinois 1. Title of Property Tax System? Property Tax. 11. Frequency of general revaluations? Every four years generally. 35 Ill. Comp. Stat. 200/9-215. Ev- 2. Type of property taxed along with brief description? ery three years in Cook County. Real property only. Personal property is not taxed; See 35 Ill. Comp. Stat. 200/24-5. 12. Date of last general revaluation? 2011 for counties with the township form of government 3. Person tax legally imposed on? Owner. and less than 3 million inhabitants. 2010 for counties with 4. Unit of assessment? Separate Parcel. the commission form of government and less than 3 million 5. Tax rate(s) set by? inhabitants. 35 Ill. Comp. Stat. 200/9-215 The property tax is a local tax imposed by local government 13. Valuation date used for current assessment period? taxing districts (e.g., school districts, municipalities, and January 1st of current year counties) and administered by local officials (e.g., township 14. Main exemptions/reliefs? assessors, chief county assessment officers, local boards of Disabled veterans’ homestead exemption review, county collectors). The rate also depends on type of Returning veterans’ homestead exemption property as listed in http://tax.illinois.gov/AboutIdor/Tax- General and alternative homestead exemption Stats/PropertyTaxStats/2011/index.htm (table 8). Government property No state property tax. Charities 6. Current tax rate? Local government property Tax Rate – varies in the 6,000+ taxing units throughout the Federal property different counties Religious property Assessment Ratio –The required assessment level for tax pur- Schools and colleges poses on any parcel of real property in any county, except Cook Senior citizens County, is 331/3 % of the property’s fair market value, excluding 15. Initial appeal process? farmland and farm buildings. Cook County classifies prop- File a complaint with the local county board of review. Cook erty and assesses classes at different percentages of fair market County residents also have the option of applying for revi- value. [For example, the required assessment level for the resi- sion with the county assessor.

A-17 16. Independent body to determine unresolved appeals? property and all personal property. Except in limited circum- Illinois Property Tax Appeal Board or circuit court. At the stances, the state may not impose property taxes on tangible Property Tax Appeal Board a favourable court ruling is un- property. Ind. Code § 6-1.1-18-2. likely unless all available administrative remedies have been 7. Frequency of adjustment of tax rate(s)? Annually. exhausted. 8. Tax collected by? 17. Property tax revenue vs. other revenue? Variety of taxing authorities, including townships and Illinois collected approximately $23.43 billion in state and counties local property taxes in 2010, representing 43.62% of the $53.7 billion in state and local taxes collected. At the state 9. Assessor responsible for assessments? level, property taxes represented nearly 0% of total taxes col- County assessors are responsible for assessing locally assessed lected. property. The Department of Local Government Finance Property taxes accounted for approximately 83% of taxes col- (DLGF) assesses centrally assessed property (e.g. public util- lected at the local government level. ity property). 18. Any significant recent changes and important issues? 10. Basis of valuation? Business Corridor Abatements : Illinois property that is not Property is assessed at “true tax value.” True tax value is not otherwise exempt from property tax and is situated in a equivalent to fair market value. qualifying business corridor created by an intergovernmental 11. Frequency of general revaluations? agreement may claim property tax abatement for up to 10 In 2012, Indiana replaced its “general reassessment” process years. P.A. 97-577 (H.B. 212), Laws 2011 with a four-year “cyclical reassessment” process. Under cy- Omitted Taxes : Legislation has been enacted that authorizes clical reassessment, an assessor must divide all parcels into county assessors to assess properties that may have been four groups each containing at least 25% of the parcels in omitted from local Illinois property tax assessments for up the county. An parcel will be reassessed once dur- to three years (previously, any years) prior to the current as- ing each four year cycle. The first assessment date for which sessment year. The county assessor must provide a notice and cyclical reassessment applies is March 1, 2015. In years when an opportunity to be heard regarding the properties omit- a property is not reassessed, the DLGF operates a system for ted from assessments, and the notice must include a request annually adjusting the assessed value of real property to ac- that the person receiving the notice who is not the current count for changes in value in the years since a reassessment taxpayer contact the county assessor’s office by telephone, in took effect. Ind. Code § 6-1.1-4-4.5 and 50 I.A.C. 27. writing, or in person and explain that the person is not the current taxpayer. A charge for tax of previous years cannot be 12. Date of last general revaluation? 2012. made against property if any of several new limitations apply. 13. Valuation date used for current assessment period? S.B. 2797, Laws 2011. March 1st of the assessment year.

Indiana 14. Main exemptions/reliefs? Buildings and personal property owned, occupied and used 1. Title of Property Tax System? Property Tax. for educational, literary, scientific, religious, or charitable 2. Type of property taxed along with brief description? purposes. Governmental and public property. Ind. Code § Real and personal property – Both general business property 6-1.1-10-1 et seq. and oil and gas property are locally assessed. Public utilities, telecommunications, and railroads are centrally assessed. 15. Initial appeal process? Both centrally assessed property and locally assessed prop- 3. Person tax legally imposed on? Owner. erty must be appealed in writing to the township or county 4. Unit of assessment? Separate Parcel. assessor within 45 days from mailing date of the written th 5. Tax rate(s) set by? Local governments. notice of assessment (or May 10 of the tax billing year if a notice is not sent) to request an informal conference 6. Current tax rate? to discuss the assessment. Ind. Code § 6-1.1-15-1(a)-(d). Property taxation is essentially local. In 2012, the most recent Following the informal conference with the local assess- year for which data was available, the highest property tax ing official, the assessor will make a recommendation either rate among the counties in the state was 6.9615, the lowest denying or approving the appeal. If denied, the appeal will was 0, and the median rate was 1.88. See http://www.stats. be forwarded to the county Property Tax Assessment Board indiana.edu/taxframe.html. of Appeals (PTABOA) for review. If a taxpayer is not satis- Property taxes are capped by statute and by the Indiana con- fied with the decision of the PTABOA or if the PTABOA stitution at no more than 1% for homesteads, 2% for other fails to hear the case within 180 days after the appeal was residential and agricultural property, and 3% for all other real initiated or fails to issue a determination within 120 days

A-18 after holding its hearing, the taxpayer has the right to ap- which the group’s reassessment begins. P.L. 112-2012, Ind. peal to the Indiana Board of Tax Review (IBTR) by filing Code § 6-1.1-4-21.4 a Form 131. State Review of County Exemptions: Gives discretion to the 16. Independent body to determine unresolved appeals? Department of Local Government Finance (DLGF) to re- After being heard by the IBTR, taxpayers may also seek re- view property tax exemptions approved by county auditors. view by the Indiana Tax Court and, subsequently, the Indi- The DLGF was previously required to review every exemp- ana Supreme Court. tion. P.L. 137-2012, Ind. Code § 6-1.1-11-8 A county property tax assessment board of appeals (PT- 17. Property tax revenue vs. other revenue? ABOA) must provide thirty day’s notice before making any Indiana collected approximately $7.65 billion in state and lo- changes to a tangible property valuation or adding tangible cal property taxes in 2010, representing 32.8% of the $23.3 personal property to a return. P.L. 146-2012, Ind. Code § billion in state and local taxes collected. At the state level, 6-1.1-13-1 property taxes represented nearly 0% of total taxes collected. Counties that are late in issuing property tax bills must set Property taxes accounted for approximately 80.23% of taxes aside $1,000,000 for each year they are delayed, to compen- collected at the local government level. sate local taxing units. Provides a mechanism for the county executive of such counties to appoint an individual to carry 18. Any significant recent changes and important issues? out the duties of the county auditor, treasurer, or assessor. Personal Property Tax Returns: Effective May 15, 2011, the P.L. 112-2012, Ind. Code § 6-1.1-22.6-18. deadline for amending a personal property tax return is ex- Interest on Refunds: The rate of interest owed on property tax tended to 12 months (previously, six months) but requires a refunds, previously a fixed rate of 4%, will be the rate estab- 10% reduction in any refund or credit if the amended return lished by the Commissioner of the Department of Revenue. is filed between six and 12 months after the original filing P.L. 120-2012. Interest on a refund is to be compounded date. P.L. 172-2011 (H.B. 1004) using the rate in effect for each particular year covered by the Burden of Proof: Effective February 22, 2012, if an assessment refund. P.L. 235-2013, Ind. Code § 6-1.1-26-5. that is the subject of a review or appeal increased the assessed Interest on Underpayments: The rate of interest owed on prop- value of the assessed property by more than 5% over the as- erty tax deficiencies, previously a fixed rate of 10%, will be sessed value determined by the assessor for the immediately the rate established by the Commissioner of the Department preceding assessment date, the assessor has the burden of of Revenue. P.L. 120-2012, Ind. Code § 6-1.1-37-9 proving the assessment is correct in any administrative or ju- Waiver of Interest and Penalties: A county may adopt an or- dicial proceedings. P.L. 6-2012, Ind. Code § 6-1.1-15-17.2. dinance to waive interest and penalties associated with delin- In addition, for assessment dates after 2013, if the assessed quent property tax payments. P.L. 56-2012 value of real property is reduced by an appeal to the property Property Leased to State: Real property leased wholly or in tax assessment board of appeals, and the assessor increases part to a state agency is exempt from property taxes if the the assessed value in a subsequent year, then the assessor has lease requires the state agency to reimburse the owner for the burden of proving the assessment is correct. P.L. 235- property taxes. P.L. 257-2013. 2013, Ind. Code § 6-1.1-4-4.3. Abatement law is amended to allow designating bodies dis- Residential Builders: Beginning July 1, 2011, a 50% Indiana cretion in setting abatement schedules and to eliminate pro- property is available to a residential builder for visions for “enhanced abatements”. House Bill 1545, Laws a single family residence, townhouse, or condominium that 2013. has never been occupied. The deduction will terminate when Requirement that a county auditor remove real property title to the structure is transferred to a homeowner. The de- from tax sale if the county treasurer and taxpayer agree to duction applies for one assessment date for which the struc- mutually satisfactory arrangement for payment. Senate Bill ture is assessed as partially completed and not more than 0275, Laws 2013. three assessment dates for which the structure is assessed as Personal property . Effective July 1, 2015 and ap- fully completed. A residential builder may not claim deduc- plicable to assessment dates after December 31, 2015, the tions for more than three residences in Indiana per assess- county (COIT) council of a county may adopt an ment date. P.L. 175-2011, Ind. Code § 6-1.1-12.8-3 ordinance providing that, if for a particular assessment date Reassessment: Provides deadlines for reassessing parcels in a the acquisition cost of a taxpayer’s business personal property group under a rolling assessment plan. Provides that one- in a county is less than $20,000, the taxpayer is not required third of the parcels must be reassessed before October 1st of to file a personal property return for the taxpayer’s business the year that the group’s reassessment begins, with another personal property in the county for that assessment date, and third having to be reassessed before January 1st of the fol- the taxpayer’s business personal property in the county for lowing year, and with all properties in the group having to that assessment date is exempt from taxation. The business be reassessed by March 1st of the year following the year in personal property tax exemption does not apply to mobile

A-19 assessed as personal property, personal property held Art galleries - All grounds and buildings used for public as an investment, or personal property that is owned by libraries, public art galleries, and libraries and art galleries certain utilities subject to regulation by the Indiana Utility owned and kept by private , associations, or cor- Regulatory Commission (IURC) and is assessed as utility porations, for public use and not for private profit. Claims property. A taxpayer is required to file a certification with for exemption for libraries and art galleries owned and kept the county assessor before May 15 of the year in which the by private individuals, associations, or for public assessment date occurs; a penalty is imposed if the annual use and not for private profit must be filed with the local certification is not timely filed. In addition, the tax rate for assessor by February 1 of the first year the exemption is re- certain tax increment financing areas must be calculated as if quested. the business personal property exemption were not in effect. Barn and one-room schoolhouse Cattle facility Iowa Cemeteries Data center 1. Title of Property Tax System? Property Tax. Disabled veterans homestead 2. Type of property taxed along with brief description? Educational institutions Real and specified intangible property (certain intangibles Family farm credit of credit unions and investment companies). – Residential, Forest cover agricultural, commercial, and industrial property is locally as- Forest reservations sessed. Railroads and utilities are centrally assessed. Fruit tree reservations 3. Person tax legally imposed on? Owner. Governments: state, cities, counties, townships Historic property rehabilitation 4. Unit of assessment? Separate Parcel. Homestead credit 5. Tax rate(s) set by? Various localities. Impoundment structures 6. Current tax rate? Industrial partial (427B) Differs in each locality and is a composite of county, city, Industrial machinery and equipment and computers first as- school district, and special levies. Taxes are levied in terms of sessed in Iowa for 1995 and thereafter dollars per $1,000 of taxable value and are collected locally. Libraries/literary societies The consolidated tax rates for each city in Iowa are located at Low-income for elderly, disabled http://www.dom.state.ia.us/local/city/. Low-income rent reimbursement for elderly, disabled Low-rent housing Iowa has more than 2,000 taxing authorities. Cities, counties, Methane gas conversion school districts, and townships are the most common. Tax- Military exemption ing authorities may also include community college districts, Mobile home reduced rate for low income agricultural extension districts, assessor offices, hospital dis- Native prairies tricts, and sanitation districts. In addition, there are associa- Open prairies tions for fire protection, drainage, and other public needs Personal property – The state of Iowa does not levy a per- that levy taxes. sonal property tax. Iowa Code § 427A.2. However, some per- 7. Frequency of adjustment of tax rate(s)? Annually. sonal property is taxed as real property for purposes of the 8. Tax collected by? County Treasurer. property tax. Iowa Code § 427A.1. 9. Assessor responsible for assessments? Pollution control and recycling Varies - Each of Iowa’s 99 counties has one assessor. Eight Iowa Public grounds cities have their own assessors. Any city with a population of Recreational lakes more than 10,000 people may elect to have its own assessor. Religious, charitable, benevolent associations Rivers and streams 10. Basis of valuation? Market value. River and stream banks 11. Frequency of general revaluations? Special assessments for elderly, disabled, low income Locally assessed real property is valued every two years. Iowa Speculative shell buildings Code § 428.4. Centrally assessed property is valued annually. Urban revitalization 12. Date of last general revaluation? 2011. War veterans associations Web search portal - Property, other than land and buildings 13. Valuation date used for current assessment period? and other improvements, that is utilized by a web search portal January 1st. business as defined in and meeting the requirements of sec- 14. Main exemptions/reliefs? tion 423.3, subsection 92, including computers and equipment Agricultural land that are necessary for the maintenance and operation of a web

A-20 search portal and other property whether directly or indirectly General business property is locally assessed. Motor carriers, connected to the computers, including but not limited to cool- railroads, and utilities are centrally assessed. ing systems, cooling towers, and other temperature control in- 3. Person tax legally imposed on? Owner. frastructure; power for transformation, distribu- tion, or management of electricity, including but not limited 4. Unit of assessment? Separate Parcel. to exterior dedicated business-owned substations, and power 5. Tax rate(s) set by? County. distribution systems which are not subject to assessment under 6. Current tax rate? chapter 437A; racking systems, cabling, and trays; and backup Assessment Rates power generation systems, battery systems, and related infra- Residential – 11.5%; structure all of which are necessary for the maintenance and Land devoted to agricultural use – 30% of “use value”; operation of the web search portal site. Vacant lots – 12%; Wetlands Real property of not-for-profit organizations – 12%; Wildlife habitats Public Utility Property – 33%; Wind energy conversion Commercial and industrial real property – 25%; 15. Initial appeal process? Mineral leasehold interests, except certain low producing in- Written protests may be filed with the county (or city) board terests – 30%; of review between April 16th and May 5th of the year of the Commercial and industrial machinery and equipment – 25% assessment. Iowa Code § 441.37. Centrally assessed property of retail cost when new less 7 years straight-line depreciation is appealed to the State Board of Tax Review. (note residual value not less than 20% of retail cost when new). 16. Independent body to determine unresolved appeals? If unsatisfied with the county (or city) board of review a The combined millage rates differ by county. In 2012, the mill- property owner may appeal to the State of Iowa Property age rates ranged from .0871 to .2147 with an average of .1313 Assessment Appeal Board. If dissatisfied with a property as- 7. Frequency of adjustment of tax rate(s)? Annually. sessment appeal board decision, the decision may then be 8. Tax collected by? County. appealed to the district court. In the alternative, property 9. Assessor responsible for assessments? owners may still file appeals directly with the district court County appraiser for locally assessed property; Director of and forego filing with the property assessment appeal board. Property Valuation for centrally assessed property. 17. Property tax revenue vs. other revenue? 10. Basis of valuation? Iowa collected approximately $9.8 billion in state and local Fair market value, except for land devoted to agricultural use property taxes in fiscal 2012/2013, representing 38.6% of the and commercial and industrial machinery and equipment. $12.31 billion in state and local taxes collected. No property taxes are collected at the state level. 11. Frequency of general revaluations? Property taxes accounted for approximately 84% of taxes col- Annually. Kan. Stat. Ann. §§79-1476, 79-1478 lected at the local government level. 12. Date of last general revaluation? State-wide reappraisal in 1989 with annual valuations as of 18. Any significant recent changes and important issues? January 1 of each year since 1989. Assessment Limitations - The Iowa Department of Revenue has announced that an assessment limitations order, or “roll- 13. Valuation date used for current assessment period? st back,” on Iowa property value has been issued for purposes January 1 . of Iowa property tax. The order adjusts the property values 14. Main exemptions/reliefs? used by local governments to compute property taxes for Governmental and public property agricultural, residential, commercial, and industrial property. Non-profit, religious, charitable, and educational Release, Iowa Department of Revenue, October 26, 2011. Commercial and industrial machinery and equipment ac- Appeal – Taxpayers cannot appeal values in an off-appraisal year. quired after June 30, 2006. Tax Cuts – S.F. 295, effective in 2014, cuts taxes on all forms 15. Initial appeal process? of business property by taxing them at 95% assessed value in The initial appeal must be made to the county appraiser. 2013 and 90% after that. This may be done within 30 days of the mailing of the valua- tion notice for real property, (on or before March 1) or before Kansas May 15th for personal property. 1. Title of Property Tax System? Property Tax. If an appeal is not filed upon receipt of the valuation notice, 2. Type of property taxed along with brief description? they may file a Payment Under Protest appeal with the pay- Real and personal property. Kan. Stat. Ann. § 79-101. ment of property taxes.

A-21 16. Independent body to determine unresolved appeals? tions and requirements. Significant changes to the state’s prop- The appraiser’s decision may be appealed to the State Court erty valuation and appeals process made by the bill include: of Tax Appeals. If the value of the property is less than $2 • Repealing the state’s current requirement that the million or if it constitutes a single-family residence, the tax- taxpayer post a bond of 125% of assessed tax when a payer may appeal to the Small Claims Division of the State property tax valuation is being appealed. Court of Tax Appeals. • Giving taxpayers the right to appeal BOTA orders to Taxpayers may obtain review of orders of the COTA by ap- either a district court or the Kansas Court of Appeals, pealing to the district court in the county in which the property and eliminating the existing requirement to request is located, with the exception of utility taxpayers, who obtain reconsideration of a final decision before seeking ju- review from the Court of Appeals. Kan. Stat. Ann. § 74-2426. dicial review. Taxpayers are required to exhaust administrative remedies be- • Updating the version of the Appraisal Foundation’s fore seeking a judicial review. Kan. Stat. Ann. §77-612. professional appraisal standards that are to be followed in Kansas. Current law requires the state to follow the The county appraisal of leased commercial and industrial version that was in effect as of March 1992, but the property is presumed correct unless taxpayer files within 30 bill changes that to be the most current version. days of the county informal hearing copies of income and ex- • Prohibiting an increase in valuation, for a two-year pe- penses for 3 prior years. Kan.Stat.Ann. S79-1609 (L. 2013). riod, of certain real property where the value was reduced The county and taxpayer are permitted to file a tax grievance by a final determination made pursuant to the valuation with COTA to correct certain clerical errors (as defined) in appeals process, unless substantial and compelling rea- the assessment of property within 4 years. Kan.Stat.Ann. S sons have been documented by the appraisers. 79-1702 (L. 2013). The bill also changes certain procedures and requirements of 17. Property tax revenue vs. other revenue? the BOTA. For example, it: Kansas collected approximately $4.1 billion in state and local • Expedites the time for issuing decisions. Currently, the property taxes in 2012, representing 31.4% of the $13.2 bil- COTA has 120 days from the date a matter was finally lion in state and local taxes collected. submitted to render a final order. The bill requires that the BOTA render and serve summary written deci- 18. Any significant recent changes and important issues? sions within 14 days, subject to extensions for good Requiring an annual commercial vehicle fee in lieu of property cause. Taxpayers may request that a full and complete tax starting in 2014 - This bill imposes an annual commercial BOTA opinion be issued within 90 days. vehicle fee on any truck or truck tractor registered for a gross • Directs the BOTA to conduct all proceedings in a fair and weight of more than 10,000 pounds, which is operating in impartial manner, affording all taxpayers a neutral inter- this state as a commercial vehicle and will become effective pretation of state tax laws. The bill provides that BOTA January 1, 2014. The annual commercial vehicle fee will take decisions may not be based on arguments concerning the the place of the current ad valorem property tax levied by shifting of tax burdens or revenue losses or gains. either the state or the county. The commercial vehicle fee will • Expands the small claims division’s authority. Cur- be in addition to the applicable registration fee. The com- rently, the division can hear matters involving maxi- mercial vehicle fee is contained on a fee schedule within this mum appraised valuations of $2 million. The bill in- bill and is based on registration weight. The one exception is creases that to $3 million. It also bars the use of any for commercial vehicles up to 12,000 pounds the fee has an BOTA employee as a hearing officer in the division age component as well. House Bill 2557 and permits notices of appeals to be signed by either Watercraft valuation and taxation starting in tax year 2014 – the taxpayer or the taxpayer’s representative. Changes to the property tax system for watercraft such that • Restricts the BOTA generally from determining who the current 30 percent assessment level will be reduced to may sign appeals forms or represent taxpayers. It also 11.5 percent in tax year 2014; and then to 5 percent in tax prohibits the BOTA from making determinations as year 2015 and thereafter. to what constitutes the unauthorized practice of law, S.B. 231: On May 12, 2014, Governor Sam Brownback or whether contingency fee agreements are permit- signed into law legislation that reorganizes the State Court ted. The BOTA also may not impede an agreement or of Tax Appeals and makes significant changes to the state’s settlement between a county and a taxpayer. process for deciding property valuation disputes. It takes ef- fect on July 1, 2014. Kentucky Under the bill, the State Court of Tax Appeals (“COTA”) will 1. Title of Property Tax System? Property Tax. become an administrative agency known as the State Board of 2. Type of property taxed along with brief description? Tax Appeals (“BOTA”) and be subject to certain new restric- Real and personal property

A-22 General business real property and motor vehicles are locally the assessment notice, Ky. Rev. Stat. Ann. § 132.486 and Ky. assessed. Personal property, public service corporations, dis- Rev. Stat. § 131.110. tilled spirits in a bonded warehouse and watercraft operated Protests of real property begin with a conference with the prop- for commercial purposes are assessed by the state. erty value administrator. Ky. Rev. Stat. Ann. §§ 13.045, 133.120. 3. Person tax legally imposed on? Owner. The conference must occur prior to, or during, the inspection 4. Unit of assessment? Separate Parcel. period of the real property tax roll, that begins on the first Mon- day in May and lasts 13 days. Ky. Rev. Stat. Ann. § 133.045. 5. Tax rate(s) set by? State and localities. After the conference, an appeal must be made to the county 6. Current tax rate? board of assessment appeals not later than one workday after The 2012 State Real Property Tax Rate was 12.2 cents the inspection period ends. Ky. Rev. Stat. Ann. § 133.120. per $100 of assessed value. Local rates vary depending on Decisions of the county boards of assessment appeals, Ky. property type and location http://revenue.ky.gov/NR/ Rev. Stat. Ann. § 131.340, and rulings made by the Depart- rdonlyres/476D4290-1662-4383-BDE0-6783FB216D74/0 ment of Revenue, Ky. Rev. Stat. Ann. § 131.110, must be ap- /2012PropertyTaxRateBook012813_2613.pdf. pealed to the Kentucky Board of Tax Appeals (BTA) within 7. Frequency of adjustment of tax rate(s)? Annually. 30 days of the date of the ruling, order, or determination. 8. Tax collected by? 16. Independent body to determine unresolved appeals? Centrally assessed property tax may be collected by the De- Decisions of the BTA must be appealed to the Franklin partment of Revenue, County, City, School District or Other County Circuit Court or to the circuit court of the county Special District. Taxes from locally assessed property are col- in which the taxpayer resides or conducts business, except lected at the county level. that a BTA decision on a final order of a county board of as- 9. Assessor responsible for assessments? sessment appeals may be appealed to the circuit court of the County property value administrators assess real property. county in which the appeal originated. Ky. Rev. Stat. Ann. County clerks assess motor vehicles. Tax on the following § 131.370. The appeal must be filed with the circuit court are assessed and administered centrally by the Department within 30 days after the ruling of the BTA. of Revenue: (1) tangible personal property, (2) property of 17. Property tax revenue vs. other revenue? public service corporations, and (3) watercraft of any cor- Kentucky collected approximately $2.96 billion in state and poration operating in Kentucky, and (4) distilled spirits in local property taxes in 2010, representing 21.52% of the bonded warehouses. $13.77 billion in state and local taxes collected. At the state 10. Basis of valuation? Fair cash value level, property taxes represented 5.4% of total taxes collected. Property taxes accounted for approximately 57.75% of taxes 11. Frequency of general revaluations? collected at the local government level. Revalued annually with a physical examination required no less than once every four years. Ky. Rev. Stat. 132.690. 18. Any significant recent changes and important issues? Taxation as a Public Service Company – Effective April 11, 12. Date of last general revaluation? 2012, Ky. Rev. Stat. 136.120 was amended to clarify that a Varies by assessing jurisdiction; annually qualified air freight forwarded is not subject to taxation as 13. Valuation date used for current assessment period? a public service company, and defines it as “a person that is st January 1 . engaged primarily in the facilitation of the transportation of 14. Main exemptions/reliefs? property by air; does not itself operate aircraft; and is in the Reduced rates for :Farm implements and machinery; Livestock; same affiliated group as an affiliated airline. H.B. 444 Machinery engaged in manufacturing; Pollution control facili- The General assembly made three changes to property taxes in ties; Alcohol production facilities; Tangible personal property 2013. First, the definition, and thus, taxation of broadcast and located in a foreign zone; A fluidized bed energy produc- telephonic equipment was revised. Second, the preferential tion facility; Motor vehicles held for sale in the inventory of a treatment of property certified as a pollution control facility was license motor vehicle dealer; Machinery and equipment used narrowed. Third, the definition of “public service company” in for recycling purposes; and Qualifying voluntary environmental KRS § 136.120 was expanded to include wind turbine and solar remediation property. Ky. Rev. Stat. § 132.020 and § 132.200. generating companies. 2013 HB 440, Sections 6-9 and 24. Exempt: Public property used for public purposes; Property owned by institutions of religion; institutions of purely public Louisiana charity, and institutions of education. Ky. Const. § 170 1. Title of Property Tax System? Property Tax. 15. Initial appeal process? 2. Type of property taxed along with brief description? Protests of personal property assessments are made to the Real property, personal property, and specific intangible Department of Revenue, , within 45 days from the date of property (public services properties, bank stock, and certain

A-23 credits) – General business property is locally assessed. Rail- 15. Initial appeal process? , airlines, utilities, insurance, and transportation equip- Centrally assessed property is appealed directly to the Loui- ment is centrally assessed. siana Tax Commission. 3. Person tax legally imposed on? Owner. Locally assessed property assessments are subject to review by the parish’s board of review. La. Rev. Stat. § 47:1931. Dur- 4. Unit of assessment? Separate Parcel. ing a period of 15 days between August 15th and September 5. Tax rate(s) set by? Parish and cities. 15th, the assessment lists of each parish are open for public 6. Current tax rate? inspection. [The assessor publishes in the local newspaper Varies among locality. The various local property taxes are which two weeks apply to his/her office]. During this period, listed at http://www.latax.state.la.us/Menu_AnnualReports/ taxpayers should check the values on their property, and dis- UploadedFiles/2012%20Annual%20Report.pdf (starting on cuss this with the assessor. If there is a disagreement, and the p. 45). taxpayer wishes to protest the value, the taxpayer must at that time fill out a form “Notice of Appeal Request For Board of 7. Frequency of adjustment of tax rate(s)? Annually. Review” (Form 3101), and schedule an appearance before the 8. Tax collected by? parish Board of Review for hearing(s) held for this purpose. The Sheriff in each parish is responsible for preparing and In Orleans Parish the “open inspection period” is Aug. mailing the actual tax bill, and for collecting the tax amounts 1-Aug. 15. The Board of Review deadline is 30 business days owed by each taxpayer. after the last date for public inspection. If you are dissatisfied 9. Assessor responsible for assessments? with their ruling you must appeal to the LA Tax Commis- Parish assessors assess locally assessed property. The Loui- sion within 10 days. siana Tax Commission assesses the operating property of 16. Independent body to determine unresolved appeals? public service companies, insurance companies, railroads and If either the assessor or the taxpayer is not satisfied with the rolling stock and transportation equipment. determination of the Board of Review, either may obtain 10. Basis of valuation? from the Board, an Appeal Form (Form 3103.A) for further A percentage of the property’s fair market value or, for agri- review by the Louisiana Tax Commission. La. Rev. Stat. § cultural, horticultural, march and timber lands, the property’s 47:1989. The Louisiana Tax Commission will consider any use value and all appeals timely filed in hearings that are open to the public. 11. Frequency of general revaluations? 17. Property tax revenue vs. other revenue? Real property is revalued every four years, and public service Louisiana collected approximately $3.38 billion in state and property annually. La. Rev. Stat. § 47:2331. local property taxes in 2010, representing 20.93% of the Reassessment must take place at least once every 4 years. The $16.15 billion in state and local taxes collected. At the state language in the statute leaves open the assessor to make ad- level, property taxes represented less than 1% of total taxes justments in the interim years. However, the statute and Tax collected. Commission rules and regulations are clear that any revalua- Property taxes accounted for 45% of taxes collected at the tion must be indexed back to the valuation date of that cycle. local government level. Orleans Parish re-values annually. 18. Any significant recent changes and important issues? 12. Date of last general revaluation? Exemption by the Board of Commerce and Industry - Constitu- 2012– With values established for January 1, 2011 tional Amendment authorizes the Board of Commerce and August 1st is the “Valuation Setting Date” in Orleans Parish, Industry to enter into a contract granting an exemption from but the lien date is still Jan. 1 ad valorem property taxes for property owned or leased by, and used by, a targeted non-manufacturing business in the 13. Valuation date used for current assessment period? st operation of its facility. Further provides that the exemption January 1 . The value of inventory is based on the preceding is available only to a business which has at least 50% of its to- calendar year’s twelve month average. tal annual sales from its Louisiana site or sites to out-of-state 14. Main exemptions/reliefs? customers or buyers, or to in-state customers or buyers for re- Homesteads (up to $7,500, plus another $7,500 for a 100% sale to an out-of-state customer or buyer for ultimate use, or disabled veteran or surviving spouse); Governmental and to the federal government or any combination thereof. Con- public property; Mining, oil, and gas properties; Nonprofit, stitutional Amendment provides that the first $10,000,000 religious, charitable, and educational organizations; Distri- or 10% of fair market value, whichever is greater, of the bution centers; Energy systems; Insurance premiums; In- facility property, the land underlying the facility and other transit property; Inventories (storage only); etc. property pertaining to the facility on which ad valorem taxes

A-24 have previously been paid, inventories, consumables and Waldo – 0.00583 property eligible for the manufacturing exemption shall not Washington – 0.00823 be exempt. Further provides that the contracts shall only be 7. Frequency of adjustment of tax rate(s)? Annually. available in parishes which have agreed to participate in the program, in the manner provided by the legislature by law. 8. Tax collected by? Counties, cities, and towns. 9. Assessor responsible for assessments? Maine Local assessors in counties, towns, and cities assess locally 1. Title of Property Tax System? Property Tax. assessed property. The State Tax Assessor assesses telecom- 2. Type of property taxed along with brief description? munications personal property, which is subject to a state Real and personal property (some business equipment is ex- property tax, Me. Rev. Stat. tit. 36, § 457, and not to local empt) – General business property (excluding that centrally property taxes, Me. Rev. Stat. tit. 36, § 458. The State Tax assessed) is locally assessed. Telecommunications personal Assessor also establishes the valuation factors for forestland property is centrally assessed. that must be used by local assessors, and is responsible for However certain business equipment is exempt from taxa- assessing real and personal property located in unorganized tion, and tax paid on certain other business equipment is territories in the state. Me. Rev. Stat. tit. 36, § 1602. subject to state reimbursement under the Business Equip- 10. Basis of valuation? Just value. ment Tax Reimbursement (“BETR”) program. The Telecommunications Personal Property Tax is a State 11. Frequency of general revaluations? property tax assessed by Maine Revenue Services on busi- Assessors must physically inspect and inventory each real nesses that provide interactive two-way communications for property and personal property account at least every four compensation in Maine. The operating plant and personal years. Me. Rev. Stat. tit. 36, § 328. property used to produce and deliver communications services 12. Date of last general revaluation? Varies. are assessed according to its full just value at a rate of 22 mills 13. Valuation date used for current assessment period? for 2011. Single and multi-line telephones, pay stations, tow- April 1st (except May 15th for telecommunications personal ers, motor vehicles and real estate are not included in this as- property) sessment, though they are subject to local tax by municipalities. The 2011 state property tax commitment was $17.7 million. 14. Main exemptions/reliefs? Government and publicly owned property; In-transit prop- 3. Person tax legally imposed on? Owner. Me. Rev. Stat. tit. erty moving through the state in interstate commerce; Non- 36, § 502. profit healthcare facilities; Charitable organizations; Property 4. Unit of assessment? Separate Parcel. owned by religious, charitable, and benevolent institutions; 5. Tax rate(s) set by? Town, cities, and counties. Homesteads [residential property owned by permanent resi- 6. Current tax rate? dents and certain military personnel ($10,000 of value)] Tax rates for locally assessed property varies. 15. Initial appeal process? The tax rate for telecommunications tax was 19.2 mills for Owners of locally assessed property who wish to protest a 2012. For assessments made in 2013 and subsequent years, valuation, classification, or denial of an exemption are re- the State Tax Assessor will apply the tax rate of the munici- quired to review the dispute at an administrative level before pality or unorganized territory in which the qualified tele- seeking court redress. The process for challenging an assess- communications equipment is located to the just value of the ment begins by filing a written abatement application with equipment as adjusted by the municipality’s or unorganized the local assessor within 185 days from the commitment of territory’s certified assessment ratio. the taxes (i.e., the date the tax rolls are delivered to the tax 2012 Tax Rates for property located in the Unorganized Ter- collector) or with the municipal officers (mayor, alderman, ritory: selectmen) after one year but within three years of the com- Aroostook – 0.00666 mitment. Me. Rev. Stat. tit. 36, § 841. However, the authority Franklin – 0.00733 of municipal officers to abate an assessment does not extend Hancock – 0.00500 to correcting an alleged valuation error. Kennebec – 0.00657 Appeals from decisions of assessors or municipal officers are Knox – 0.00480 taken to the local board of assessment review if one exists, the Lincoln – 0.00507 county commissioners, or, if the property is nonresidential prop- Oxford – 0.00876 erty valued at over $1 million, the state Board of Property Tax Penobscot – 0.00887 Review. Me. Rev. Stat. tit. 36, §§ 843, 844. The appeal must be Piscataquis – 0.00699 filed within 60 days after the notice of the decision. For property Somerset – 0.00864 having a value of at least $500,000, a hearing on the appeal will

A-25 not proceed unless the property owner has paid the amount of Maryland current taxes not in dispute or, if greater, an amount equal to the 1. Title of Property Tax System? Property Tax. taxes assessed for the prior year to the extent that amount does 2. Type of property taxed along with brief description? not exceed the total assessment for the current year. Real Property, except where specifically exempted, is taxed at Owners of property assessed by the State Tax Assessor have the state and local levels. Md. Code Ann., Tax-Prop. § 6-101(a) 60 days after receipt of a notice of a tax assessment or de- (1). Personal property is exempt at the state level, but subject termination to request, in writing, reconsideration of such to local property tax on tangible personal property owned by assessment or determination. Me. Rev. Stat. tit. 36, § 151. businesses. Md. Code Ann., Tax-Prop. §§ 7-301 and 6-202. In- H.P. 491, passed in June, requires assessors or municipal of- tangible property is not taxable under the property laws of the ficers to give to any person applying to them for abatement state. Md. Code Ann., Tax-Prop. § 6-101(b). Operating prop- of taxes notice in writing of their decision upon application erty (both real and personal property) of a railroad or public within 10 days after they take final action utility is subject to tax. Md. Code Ann., Tax-Prop. § 6-103. 16. Independent body to determine unresolved appeals? 3. Person tax legally imposed on? Both decisions of a board or the county commissioners and Owner. Md. Code Ann., Tax-Prop. § 6-101(a)(1) decisions of the State Tax Assessor are made to the superior 4. Unit of assessment? Separate Parcel. court within 30 days of the notice of the decision or of the date the property owner’s application. 5. Tax rate(s) set by? Tax rates are set by the state, the 23 counties, Baltimore City, 17. Property tax revenue vs. other revenue? and numerous townships and special taxing districts. The Maine collected approximately $2.37 billion in state and lo- Board of Public Works sets the tax rate for the state’s real cal property taxes in 2010, representing 40.65% of the $5.84 property tax and the state’s tax on real property owned by a billion in state and local taxes collected. At the state level, public utility. [This determination is made in accordance with property taxes represented only 1.3% of total taxes collected. Md. Code Ann., State Fin. & Proc. § 8-134, which proclaims Property taxes accounted for approximately 99% of taxes col- that the rate shall be based on the debt service requirements lected at the local government level. on all state bonds expected to be outstanding in the succeed- 18. Any significant recent changes and important issues? ing year]. Local governments set the tax rates for their real Reconsideration of assessment – The provision regarding property tax, the state’s business tangible personal property reconsideration of a Maine tax assessment or determination tax, and their local tax on property owned by a public utility. has been modified. Taxpayers have 60 days (previously, 30 6. Current tax rate? days) after receipt of a notice of a Maine tax assessment or State Real Property Tax - $0.112 per $100 of assessed value determination to request, in writing, reconsideration of such State Public Utility Operating Property Tax - $0.28 per $100 assessment or determination. L.D. 1043 (H.P. 778), Laws of assessed value 2011; Effective June 20, 2011. County Real Property Tax – range from $0.512-2.248 per Telecommunications taxation reform – enacted in 2011. The $100 of assessed value. [Average: $0.996 per $100 of assessed law replaces the telecommunications personal property tax value] with an tax on telecommunications businesses for the County Business Tangible Personal Property Tax – range privilege of operating in Maine. The excise tax is equal to the from $0-5.62 per $100 of assessment value. [Average: $2.022 just value of qualified telecommunications equipment taxed at per $100 of assessed value] a rate of 19.2 mills in fiscal year 2012. For fiscal year 2013 and County Public Utility Operating Property Tax – range from subsequent years, the State Tax Assessor must apply the tax $0-5.62 per $100 of assessment value. [Average: $2.364 per rate of the municipality or the unorganized territory in which $100 of assessed value] the qualified telecommunications equipment is located to the Town/Special Taxing District Real Property Tax – range just value of the equipment as adjusted by the municipality›s from $0-1.49 per $100 of assessment value or the unorganized territory›s certified assessment ratio. The Town/Special Taxing District Business Tangible Personal bill establishes procedures for the assessment, collection and Property Tax – range from $0-11.00 per $100 of assessment appeal of the excise tax. L.D. 441, PL 2011, c. 430. value. (One town has a rate of $11.00, otherwise $0-3.16 is Property tax abatements – Circuitbreaker program ben- the parameter.) efits. The law provides that, for purposes of calculating eli- Town/Special Taxing District Public Utility Operating Prop- gibility at the municipal level for property tax abatement for erty Tax – range from $0-2.648 per $100 of assessment value reasons of poverty or infirmity, municipal officers may set off or otherwise treat as available benefits provided under the 7. Frequency of adjustment of tax rate(s)? Annually. Circuitbreaker Program when determining a person’s ability 8. Tax collected by? to contribute to the public charges. Effective August 30, 2012. Local Government level via the assessments of State De- 36 MRSA §§ 841(2) & 6201(10), LD 1693, PL 2011, c. 552. partment of Assessment and Taxation (SDAT). A-26 9. Assessor responsible for assessments? cated within 30 days of the date of notice of a final determi- The State Department of Assessments and Taxation (SDAT) nation of a supervisor. Md. Code Ann., § 14-509(a). assess business tangible personal property and the operating The appeal of a final determination of a property tax assess- property of a railroad or a public utility. Md. Code Ann., Tax- ment appeal board to the Maryland Tax Court may be made Prop. § 8-201. SDAT hires its own local appraisers to assess within 30 days after the determination or mailing of notice real property. of the determination. Md. Code Ann., § 14-512(a) 10. Basis of valuation? Any party to a Maryland Tax Court proceeding may appeal a Personal Property is assessed with depreciation schedules and final decision of the Maryland Tax Court to the circuit court Real Property is assessed at 100% of the “phased-in value.” for the county in which the property is located. Md. Code Md. Code Ann., Tax-Prop. § 8-103(c)(1). [According to Md. Ann., Tax-Prop. § 14-513 Code Ann., Tax-Prop. § 8-103(a)(3) “phased-in value” means Any party to a proceeding in the circuit court under § 14- for the 1st, 2nd, or 3rd year of a 3-year cycle: (i) the prior 513 of this subtitle may appeal a final decision of the circuit value of real property increased by one-third, two-thirds, or court to the Court of Special Appeals. Md. Code Ann., Tax- the full amount by which the value increased over the prior Prop. § 14-515 value based on a physical inspection of the real property; or 17. Property tax revenue vs. other revenue? (ii) if the value of real property has not increased, the value Maryland collected approximately $8.45 billion in state and determined in the most recent valuation. local property taxes in 2010. Operating real property, which consists of railroad operating This represented 30% of the $28.07 billion in total state and property and public utility property, is assessed at its value. local taxes collected. Md. Code Ann., Tax-Prop. § 8-103. Property taxes accounted for approximately 60% of taxes col- 11. Frequency of general revaluations? lected at the local government level. Real Property is reassessed once every three years. Md. Code In contrast, property taxes represented only 5% of total taxes Ann., Tax-Prop. § 8-104(b)(1). This is done by reviewing collected at the state level. one-third of all real property in Maryland every year. 18. Any significant recent changes and important issues? Personal Property is reassessed annually. Md. Code Ann., Tax- Payment of Tax – For tax years beginning after June 30, Prop. § 8-204(a). 2012, semi-annual payment schedule eligibility has been 12. Date of last general revaluation? increased from $50,000 to $100,000 for state, county, mu- Varies by assessing jurisdiction and type of property. [Note: nicipal , and special taxing district property taxes. One-third of all real property in Maryland is reassessed ev- (H.B. 463, Laws 2011) ery year, resulting in each individual parcel being reassessed Constant Yield Tax Rate Process – If the proposed tax rate every three years]. increases total property tax revenues, the governing body 13. Valuation date used for current assessment period? must advertise that fact and hold a public hearing on the The valuation date for real property is January st1 . Md. Code new tax rate. Ann., Tax-Prop. § 8-104(b)(2). Massachusetts 14. Main exemptions/reliefs? 1. Title of Property Tax System? Property Tax. Exemptions are primarily given for charities, schools, reli- gious organizations, and manufacturing personal property. 2. Type of property taxed along with brief description? Agricultural land and homestead credits are available. [Gen- Real and personal property – General business property is eral property tax exemptions are located in §§ 7-201-244]. locally assessed. Non-wireless telephone (special provision for electric companies), and telegraph property. Special pro- 15. Initial appeal process? visions for electric companies. Real property tax appeals are made in writing to the appro- priate local (county) assessment supervisor within 45 days 3. Person tax legally imposed on? of the notice of assessment. Md. Code Ann., Tax-Prop. § 14- Owner. Mass. Gen. Laws ch. 59, § 11. 502(a)(1). Public property is leased for the purposes of a business conducted Personal property tax appeals, including those concerning for profit or for other than public purposes, is taxable to the lessee public utility and railroad operating property, are made in as if the lessee were the owner. Mass. Gen. Laws ch. 59, § 2B. writing to the State Department of Assessment and Taxa- 4. Unit of assessment? Separate Parcel. tion within 45 days of the notice of assessment. Md. Code 5. Tax rate(s) set by? Local jurisdictions. Ann., Tax-Prop. §§ 14-504(a), 8-109(c)(5), and 8-108(c)(5). 6. Current tax rate? 16. Independent body to determine unresolved appeals? Varies by local taxing jurisdictions with rates differing based Property tax appeals may be made to the Property Tax As- on property classification as residential, open space, com- sessment Appeal Board (PTAAB) where the property is lo- mercial, industrial, or personal https://dlsgateway.dor.state. A-27 ma.us/DLSReports/DLSReportViewer.aspx?ReportName= 17. Property tax revenue vs. other revenue? TaxRatesbyClass&ReportTitle=Tax+Rates+by+Class. Massachusetts collected approximately $12.98 billion in 7. Frequency of adjustment of tax rate(s)? Annually. state and local property taxes in 2010, representing 38.78% of the $33.48 billion in state and local taxes collected. At the 8. Tax collected by? Local jurisdictions. state level, property taxes represented less than 1% of total 9. Assessor responsible for assessments? taxes collected. The boards of assessors in each city and town assess locally Property taxes accounted for 96.96% of taxes collected at the assessed property. local government level. Pipeline property and telephone and telegraph property 18. Any significant recent changes and important issues? ½ (machinery, poles, wires, conduits) is valued by the Commis- Proposition 2 limits the annual increase in the total levy of sioner and certified to local assessors by June 15th each year. municipalities. Mass. Gen. Laws ch. 59, § 21C. Mass. Gen. Laws ch. 59, § 38A; ch. 59, § 41. Distinction in Broadband v. Cellular Providers – Broad- 10. Basis of valuation? Fair cash value. band providers of telephone and high speed Internet and TV may qualify as a telephone and telegraph company. Wireless 11. Frequency of general revaluations? cellular providers do not qualify so they are not subject to Personal property centrally assessed at the state level is reval- central valuation. ued annually. Mass. Gen. Laws ch. 59, §§ 38A, 39. Revaluation of locally assessed real property can occur less Real Estate Classes – Municipalities can classify real estate frequently, but at least every three years. Mass. Gen. Laws ch. into four classes, each with different rates. 40, § 56. Michigan 12. Date of last general revaluation? Varies by assessing jurisdiction 1. Title of Property Tax System? Property Tax. 2. Type of property taxed along with brief description? 13. Valuation date used for current assessment period? st Real and tangible personal property, and unlicensed vehicles Generally, January 1 . However, municipalities can assess – General business property, telecommunications, distribu- improvements from January to June. tion personal property, and assets for electric, wind turbines, 14. Main exemptions/reliefs? and gas utilities are locally assessed. Personal property of Charitable organizations; Government or public property; railroads, telephone and telegraph, and fast freight compa- Inventory and business property; Religious property; Small nies are centrally assessed. Certain property of public service business; Water companies’ personal property. companies is centrally assessed. The state does not provide for a general homestead exemp- 3. Person tax legally imposed on? Owner. tion. However, cities and towns may allow an exemption for 4. Unit of assessment? Separate Parcel. the principal residence of a taxpayer equal to not more than 20% (30% in Boston, Cambridge, Malden, and Somerville) 5. Tax rate(s) set by? Counties, cities, villages, and townships. of the average assessed valuation of all residential parcels in 6. Current tax rate? the city or town. Mass. Gen. Laws ch. 59, § 5C. Tax rates vary extensively by county, city, and township. How- 15. Initial appeal process? ever, the rate may not exceed 15 mills ($15 per $1,000) except Aggrieved taxpayers may file an application for abatement in counties in which voters have approved rates of up to 18 with the board of assessors of the municipality in which the mills. The rates vary widely depending on homesteads and other property is located on or before the last day for payment of special assessments http://www.michigan.gov/documents/ the first installment of taxes.Mass. Gen. Laws ch. 59, § 59. taxes/2012TotalMillageRates-Entire­State_417267_7.pdf rep- resents a historical list of millage rates from 2012 tax year. Appeals from the Commissioner’s valuation of pipelines must be filed with the Appellate Tax Board by July 15th, Mass. 7. Frequency of adjustment of tax rate(s)? Annually. Gen. Laws ch. 59, § 38A, and appeals involving telephone and 8. Tax collected by? telegraph company machinery and wiring must be filed by Township, city, and village treasurers collect taxes on locally June 15th, Mass. Gen. Laws ch. 59, § 39. assessed property. Taxes collected by the State Board are col- 16. Independent body to determine unresolved appeals? lected by the State Treasurer. Refusal of the local board of assessors to abate a tax may 9. Assessor responsible for assessments? be appealed either to the county commissioners (Mass. Gen. Local Assessors are responsible for assessments. These as- Laws ch. 59, § 64), or to the Appellate Tax Board (Mass. Gen. sessments are submitted to the Boards of Equalization at the Laws ch. 59, § 65) within three months after receiving notice County level for equalization. Centrally assessed property is of the assessors’ decision. assessed by the State Board of Assessors.

A-28 10. Basis of valuation? Michigan personal property taxes when used on qualified ag- True cash value - Fair Market Value ricultural property that is exempt from taxes levied for school 11. Frequency of general revaluations? Annually. operating purposes. Act 290 (S.B. 563), Laws 2011 st Agricultural Machinery : Machinery used to install land tile 12. Date of last general revaluation? December 31 . is exempt from Michigan personal property taxes when used 13. Valuation date used for current assessment period? on qualified agricultural property that is exempt from taxes December 31st. Mich. Comp. Laws § 211.2(2) levied for school operating purposes. Act 289 (H.B. 4582), 14. Main exemptions/reliefs? Laws 2011 Personal property of financial institutions. Government or Personal Property Tax on Industrial Equipment : On March public property. Homestead [principal residence exemption]. 28, 2014, Gov. Snyder signed the following legislation to fa- In-transit property. Inventories. Nonprofit charitable, reli- cilitate the phase out of the state’s personal property tax on gious, and educational organizations. Railroads, telephone industrial equipment that was signed in 2012: S.B. 822, H.B. companies, fast freight line companies, and other companies, 4478, and S.B. 825. pollution control equipment, incentives for specific types of companies, and other specific in-lieu taxes. Minnesota 15. Initial appeal process? 1. Title of Property Tax System? Property Tax. For locally assessed property taxpayers may initially appeal 2. Type of property taxed along with brief description? to the local board of review during the week beginning the Most personal property in Minnesota is exempt from tax, second Monday in March. Mich. Comp. Laws § 211.30. The exceptions are manufactured homes and certain property exact date may vary depending on the taxing jurisdiction. owned by utility companies assessed by the state. All real Centrally assessed property is initially appealed to the State property is taxable and assessed at a local level Airlines, rail- Board of Assessors. However, non-residential and non-agri- roads, power companies and oil pipelines are centrally as- cultural properties can bypass the local boards of review and sessed by the state. file valuation appeals directly to the Michigan Tax Tribunal. 3. Person tax legally imposed on? Owner. A company assessed by the State Board of Assessors may pay 4. Unit of assessment? Separate Parcel. the tax under protest and sue the state in the court of claims within 30 days. Mich. Comp. Laws § 207.15. 5. Tax rate(s) set by? Various local taxing jurisdictions for locally assessed prop- 16. Independent body to determine unresolved appeals? erty, and at the state level. Statewide general tax that applies Appeals from a decision of a local board of review may be st to commercial and industrial property and certain seasonal filed with the Michigan Tax Tribunal no later than May 31 residential properties of the tax year for certain commercial or industrial property or July 31st of the tax year for residential real property and 6. Current tax rate? most agricultural property. Mich. Comp. Laws § 205.735a. Statewide effective tax rates vary depending on type of prop- 17. Property tax revenue vs. other revenue? erty from .58% through 3.71% http://www.revenue.state. Michigan collected approximately $14.37 billion in state mn.us/propertytax/Pages/statistics.aspx. and local property taxes in 2010, representing 40.25% of the 7. Frequency of adjustment of tax rate(s)? Annually. $35.71 billion in state and local taxes collected. At the state 8. Tax collected by? level, property taxes represented less than 9.5% of total taxes Tax on locally assessed property is collected at the county collected. level. Tax on operating property of railroads and public utili- Property taxes accounted for 93% of taxes collected at the ties is collected at the local level, though assessment of this local government level. property occurs at the state level. Minn. Stat. §§ 270.86, 18. Any significant recent changes and important issues? 273.33. Taxing Entities : Legislation has created the “Municipal The state Revenue Commissioner collects tax on airline Partnership Act” to authorize two or more local governments flight property.Minn. Stat. § 270.075. or one or more local governments and a public agency to enter into a contract to form a joint endeavor that may levy a 9. Assessor responsible for assessments? local Michigan property tax of up to five mills on all taxable The state Revenue Commissioner assesses centrally assessed property in the areas served by the joint endeavor for the property. Property not assessable by the Commissioner is purpose of providing revenue to the joint endeavor. Act 258 locally assessed by the town, village, or city assessor for all (S.B. 8), Laws 2011 purposes Agricultural Machinery : Machinery used to install or imple- 10. Basis of valuation? ment soil and water conservation techniques is exempt from Market value. Minn. Stat. § 273.11.

A-29 11. Frequency of general revaluations? General business property is locally assessed. Public service Real property is assessed/valued annually. On-site inspection corporations, airlines, and railroads are centrally assessed. of a property is required at maximum intervals of once every 3. Person tax legally imposed on? Owners or possessors. five years. Minn. Stat. § 273.08. 4. Unit of assessment? Separate Parcel. 12. Date of last general revaluation? 5. Tax rate(s) set by? All types of property are valued at their market value annually. Taxes are imposed by counties, Miss. Code Ann. § 27-39-303, This is measured by sales ratio studies that require all property and municipalities, Miss. Code Ann. § 27-39-207, including to have a median ratio of between 90 – 105%. New construc- taxes for schools and certain special purposes. There is no tion is identified and added annually and all property must be state property tax. physically reviewed at maximum intervals of once every 5 years. 6. Current tax rate? 13. Valuation date used for current assessment period? nd 2012-2013 County millage rates are available at http://www. January 2 dor.ms.gov/docs/prop_2012-2013millagerates.pdf. The 14. Main exemptions/reliefs? highest county rate is 158.70 mills, the lowest is 40.00 mills, Public schoolhouses, public hospitals, educational institu- and the average is 108.19 mills. Cities millage rates imposed tions, church property, institutions of purely public charity in addition to the county levy can also be found on the De- 15. Initial appeal process? partment of Revenue’s website at http://www.dor.ms.gov/ Taxpayers are encouraged to first appeal their value or classi- taxareas/property/main.html. fication to the assessor or, if they choose to bypass the asses- 7. Frequency of adjustment of tax rate(s)? Annually. sor or do not receive the resolution they are seeking, they can appeal to the local board of appeal and equalization. Minn. 8. Tax collected by? Stat. § 274.01. If their appeal to the local board is unsuccess- Local tax collectors collect tax for both locally assessed and ful, they appeal to the county board f appeal andequalization. centrally assessed property (if no board of review is available, appeal from the assessor’s 9. Assessor responsible for assessments? valuation is taken directly to the county board of equaliza- County assessors assess locally assessed property. tion. Minn. Stat. § 274.13). The Department of Revenue assesses the property of railroads, Centrally assessed property is appealed to the Tax court or telegraph, telephone, sleeping car, express, electric power and the district court. light companies and other public service corporations liable to 16. Independent body to determine unresolved appeals? taxation in the state. Miss. Code Ann. § 27-35-301. If the property owner is not satisfied with the actions of the 10. Basis of valuation? True value local board of appeal and equalization or county board of 11. Frequency of general revaluations? appeal and equalization, the last step to appeal a valuation or Tax Assessors must revalue real property at least once every classification is the Minnesota Tax Court. four years. Taxable personal property is valued annually. 17. Property tax revenue vs. other revenue? 12. Date of last general revaluation? Varies by assessing ju- Minnesota collected approximately $ 8.4 billion in state and lo- risdiction cal property taxes in 2012, representing 30.1% of the $ 27.9 bil- lion in state and local taxes collected. At the state level, property 13. Valuation date used for current assessment period? taxes represented less than 4.1% of total taxes collected. January 1st for all taxable real property. Miss. Code Ann. §§ Property taxes accounted for % of taxes collected at the local 21-33-1, 27-35-3. March 1st for all other taxable property government level. except heavy equipment. Miss. Code Ann. § 27-35-3. 18. Any significant recent changes and important issues? 14. Main exemptions/reliefs? Valuation Notices: The notice of property valuation sent to tax- Homestead; Broadband equipment; Computer software; payers must contain a specific notification when a property’s Credit unions; Electricity generation; Fraternal and be- classification has changed from the previous year (effective for nevolent organizations; Governmental and public property; notifications for assessment year 2012, taxes payable in 2013, Homesteads; Libraries; Mining, oil, and gas properties; Cer- and thereafter). Ch. 7 (H.F. 20), Laws 2011 (1st Special Session) tain motor vehicles; Nonprofit organizations; Telecommuni- cations; Utilities. Mississippi 15. Initial appeal process? 1. Title of Property Tax System? Property Tax. Individuals appealing locally assessed property should re- 2. Type of property taxed along with brief description? quest a hearing by filing an objection with the county board Real property, personal property, and specific intangible of supervisors. Miss. Code Ann. § 27-35-89. property (money on hand and certain evidence of indebted- Centrally assessed property is appealed to the Department ness bearing interest). of Revenue. A-30 16. Independent body to determine unresolved appeals? 10. Basis of valuation? Taxpayer’s have two opportunities to appeal board of super- True value in money. Mo. Rev. Stat. § 137.115. visors’ decisions to the circuit court. Appeals may be taken 11. Frequency of general revaluations? within 10 days of adjournment of the board of supervisors’ Annually for personal property; biennially for real property. meeting at which the original decision is made denying a Mo. Rev. Stat. § 137.115 taxpayer’s objection. Miss. Code Ann. § 11-51-77. Appeals also may be taken within 20 days of the mailing of notice 12. Date of last general revaluation? 2012. that the board of supervisors has approved the final tax rolls. 13. Valuation date used for current assessment period? Miss. Code Ann. § 27-35-119. January 1st. Decisions of the Department of Revenue (previously the 14. Main exemptions/reliefs? State Tax Commission) are appealed to the Board of Tax Exempt property includes: homesteads; property owned by Appeals within 60 days after the order is filed.Miss. Code governmental units; nonprofit cemeteries; property not held Ann. § 27-77-5. for private profit and used exclusively for religious worship or 17. Property tax revenue vs. other revenue? charitable purposes, educational purposes, or for agricultural Mississippi collected approximately $2.53 billion in state and horticultural purposes; household goods and personal and local property taxes in 2010, representing 28.20% of the effects; and merchants’ and manufacturers’ inventories. $8.97 billion in state and local taxes collected. 15. Initial appeal process? At the state level, property taxes represented less than 1% of Assessments of locally assessed property are initially ap- total taxes collected. pealed to the county board of equalization. Mo. Rev. Stat. § Property taxes accounted for approximately 92.71% of taxes 137.275. collected at the local government level. Assessments of centrally assessed property are initially ap- 18. Any significant recent changes and important issues? pealed to the State Tax Commission are due on or before Penalties - Imposition of a penalty is not clearly stated on September 30th. tax bills. 16. Independent body to determine unresolved appeals? Centrally Assessed Intangibles – Unit valuation fails to exclude Appeals from the board of equalization may be made to value of intangible property for centrally assessed property. the State Tax Commission. An appeal must be made to the board of equalization, with an adverse ruling, before the Tax Missouri Commission may hear the appeal. 1. Title of Property Tax System? Property Tax. 17. Property tax revenue vs. other revenue? 2. Type of property taxed along with brief description? Missouri collected approximately $5.74 billion in state and Real and personal property – General business property is local property taxes in 2010, representing 30.24% of the locally assessed. Utilities, pipelines, telecommunications, air- $18.97 billion in state and local taxes collected. Missouri col- lines, and railroads are centrally assessed. lected approximately $6.5 billion in state and local property 3. Person tax legally imposed on? taxes in 2012. Every person owning or holding real property or tangible At the state level, property taxes represented 0.3% of total personal property on the first day of January. Mo. Rev. Stat. taxes collected. § 137.075. Property taxes accounted for approximately 61.58% of taxes collected at the local government level. Property taxes ac- 4. Unit of assessment? Separate parcel counted for approximately 70% of taxes collected at the local 5. Tax rate(s) set by? government level. The tax rate is the combined rate of all taxing units within a 18. Any significant recent changes and important issues? county, the county rate, and a 3¢ state rate to fund the Blind Pension Fund. See Mo. Rev. Stat. §§ 209.130, 67.110 6. Current tax rate? http://www.auditor.mo.gov/press/ Montana 2011-118.pdf 1. Title of Property Tax System? Property Tax. 7. Frequency of adjustment of tax rate(s)? Annually 2. Type of property taxed along with brief description? 8. Tax collected by? County treasurer. Real and personal property – General business property is locally assessed. Public utilities, mining, railroads, and air- 9. Assessor responsible for assessments? lines are centrally assessed. County assessors are responsible for assessing locally assessed property. The Missouri Tax Commission is responsible for 3. Person tax legally imposed on? Owners and possessors. assessing centrally assessed property. 4. Unit of assessment? Separate Parcel. A-31 5. Tax rate(s) set by? review process, they can appeal their value to a county tax State Legislature sets tax rates in statute, §15-6-134 (f) (2) appeal board. Appeal forms are available at their local county (a) MCA clerk and recorder’s office, or on the State Tax Appeal Board’s 6. Current tax rate? website at http://stab.mt.gov/default.gov. The various rates associated with class of property are located Appeals to the county tax appeal board must be filed on or be- at http://revenue.mt.gov/content/publications/biennial_re- fore the first Monday in June or 30 days after receiving their /2010-2012/BiennialReport-2010-2012.pdf. property assessment notice, or if the taxpayer requested an in- 7. Frequency of adjustment of tax rate(s)? formal review, within 30 days of the department’s decision. If Annually, as directed by statue §15-6-134 (f ) (2) (a) MCA the taxpayer is not satisfied with a county tax appeal board’s decision, you can appeal to the state tax appeal board. Appeals 8. Tax collected by? County treasurer. to the State Tax Appeal Board must be file within 30 days of re- 9. Assessor responsible for assessments? Department of ceiving a county tax appeal board’s decision.§15-7-102(6) MCA Revenue, Property Assessment Division. Unless the taxpayer is challenging a denial of an extended 10. Basis of valuation? property tax assistance program (EPTAP), property tax as- Market value. Mont. Code Ann. § 15-8-111(1). sistance application (PTAP) or an exemption, the taxpayer 11. Frequency of general revaluations? must complete a county tax appeal process before they can Centrally assessed property is valued every year while other appeal to the State Tax Appeal Board. If the taxpayer is chal- real property is valued every 6 years. lenging a denial of EPTAP, PTAP, or an exemption, they may file their appeal directly with the State Tax Appeal 12. Date of last general revaluation? Board. The decision of the State Tax Appeal Board is final, The most recent reappraisal was completed on December 31, unless the taxpayer pursues district court action. 2008. 16. Independent body to determine unresolved appeals? 13. Valuation date used for current assessment period? Unresolved appeals from a county tax appeal board are di- July 1, 2008 for real property. January 1 (annually) for cen- rected to the State Tax Appeal Board by filing a notice of trally assessed property and personal property. appeal with the Board within 30 calendar days after receipt 14. Main exemptions/reliefs? of the decision of the county board. § 15-2-301 MCA. Tax- Governmental (Federal, State, County, City) ; Homesteads payers must exhaust all administrative remedies before ap- (Residential) and compstead (commercial) set by statute § pealing to the Board. § 15-1-222 MCA. 15-6-222 MCA ; Intangible property; Nonprofit, religious, Appeals from the State Tax Appeal Board may be appealed charitable, and educational organizations; veterans’ resi- to the district court within 60 days after service of the final dences (100% disabled), and low income by application. decision of the Board. § 15-2-303 MCA. 15. Initial appeal process? 17. Property tax revenue vs. other revenue? If taxpayers do not agree with the department’s determina- Montana collected approximately $1.28 billion in state and tion of the market value or classification of their property, local property taxes in 2011, representing 39.00% of the they have the right to request an informal assessment review $3.43 billion in state and local taxes collected. and/or file a formal appeal at the county and state level. At the state level, property taxes represented only about Request for Informal Assessment Review (Form AB-26) – This 10.58% of total taxes collected. process allows taxpayers the opportunity to explain why they Property taxes accounted for approximately 96.88% of taxes believe the value shown on their assessment notice is incorrect collected at the local government level. and answer questions concerning the value of their property. The form must be completed and returned to the Department 18. Any significant recent changes and important issues? of Revenue office address shown on the assessment notice on or before the first Monday in June of the current tax year, or within Nebraska 30 days after receiving the assessment notice, whichever is later. 1. Title of Property Tax System? Property Tax. For class three, class four, and class ten properties, the owner 2. Type of property taxed along with brief description? may request an informal assessment review at any time but only All real property, not specifically exempt, is taxed.Neb. Rev. once each valuation cycle. §15-7-102(3)(a) MCA Stat. § 77-201. Depreciable business property is the only per- http://revenue.mt.gov/content/formsandresources/current_ sonal property taxed. year_downloadable_forms/Other_Forms_Not_Yearly/ 3. Person tax legally imposed on? Owner. Property_Tax_Forms/AB26.pdf 4. Unit of assessment? Separate real property parcel; for If taxpayers are not satisfied with the results of the infor- personal property assets deemed to be depreciable personal mal review process or they do not want to use the informal property.

A-32 5. Tax rate(s) set by? organizations being used for those purposes; and qualified Municipal/local government personal property used under Employment and Investment 6. Current tax rate? Growth Act or the Nebraska Advantage Act. Tax rates vary by county and city. Rates for all taxing dis- There is a real property tax credit that offsets a portion of real tricts within all 93 counties are not published in a central property taxes. revenue.ne.gov/PAD/news_rel/2013_Real_ location. The average county tax rates are located at revenue. Property_Tax_Credit.pdf ne.gov/PAD/research/valuation/avg_rates/avgrate2012.pdf. 15. Initial appeal process? The lowest tax rate is 1.0995%, the highest rate is 2.2426%, Taxpayers can appeal a county assessor’s valuation to the county and the average is 1.9016%. Tax rates by political subdivi- board of equalization. The county board meets between June sion are located at revenue.ne.gov/PAD/research/valuation/ 1st and July 25th each year to decide taxpayer appeals. County tax_entity_all/taxentity_allcnty2012.pdf. boards in counties with a population in excess of 100,000 inhab- Qualifying agricultural land and horticultural land that is itants may extend the deadline for hearing protests to August 10. Real property protests must be filed on or before June 30th. used primarily for the production of agricultural or horticul- st tural products is assessed at 75% of its actual value. All other Personal property returns filed by May 1 must be filed on or real property is assessed at 100% of its actual value. Personal before June 30 Neb. Rev. Stat. §§ 77-1502, 77-1229. property is assessed at 100% of its net book value. Neb. Rev. Beginning in 2014, counties with a population of at least Stat. § 77-201. 150,000 must provide the opportunity for real property own- 7. Frequency of adjustment of tax rate(s)? Annually. ers to meet with the county assessor’s office to review the property record card file and assessed value determined for 8. Tax collected by? the current year. Neb. Rev. Stat. § 77-1311. The state collects taxes from air carriers and carlines and dis- tributes those taxes to the counties. All other taxes are col- 16. Independent body to determine unresolved appeals? lected at the local level, generally by the county treasurer. The County board of equalization valuation decisions may be appealed to the and Review Commission state is constitutionally prohibited from levying a property th th tax for state purposes. Neb. Const. art. VIII, § 1A. (TERC) by August 24 (or September 10 if the county has adopted a resolution to extend the deadline for hearing pro- 9. Assessor responsible for assessments? tests). Neb. Rev. Stat. § 77-1510. The county assessor is responsible for valuing all real and per- sonal property with the exception of railroads, air carriers, TERC decisions may be appealed to the Court of Appeals by carlines, and public service entities, which are assessed by the filing a petition within 30 days after the TERC’s final deci- Property Assessment Division of the Nebraska Department sion. Neb. Rev. Stat. § 77-5019. of Revenue. Public service entities include telecommunica- 17. Property tax revenue vs. other revenue? tions, electric power and light, pipeline, water, and gas com- Nebraska collected approximately $2.71 billion in state and panies that are organized for profit. local property taxes in 2010, representing 36.76% of the 10. Basis of valuation? $7.37 billion in state and local taxes collected. Real property is assessed at “actual value,” which is defined At the state level, property taxes represented less than 1% of as the market value of real property in the ordinary course of total taxes collected. trade. Neb. Rev. Stat. § 77-112. Depreciable tangible personal Property taxes accounted for approximately 76.07% of taxes property is assessed at “net book value,” which is a specified collected at the local government level. percentage of the Nebraska adjusted basis of an item as set 18. Any significant recent changes and important issues? forth in Neb. Rev. Stat. § 77-120. Valuation Notice – Beginning in 2013, the requirement to put 11. Frequency of general revaluations? the average levels of value for each class of real property on All real and personal property is assessed annually. Neb. Rev. the notice of valuation change will be eliminated. LB 822, Stat. §§ 77-1201, 77-1301. Laws 2012 12. Date of last general revaluation? Exemptions and Credits – Effective retroactively to January 1, January 1, 2013 2010, the Nebraska personal property tax credit against the Nebraska nameplate capacity tax and the personal property 13. Valuation date used for current assessment period? st tax exemption for certain property that uses wind energy are January 1 . clarified. LB 360, Laws 2011 14. Main exemptions/reliefs? Appeals – Nebraska property tax provisions relating to the Governmental and public property being used for a pub- Tax Equalization and Review Commission (TERC) are lic purpose, including housing authorities; Homesteads of modified to reduce the number of TERC commissioners persons over 65, disabled persons, and disabled veterans; from four to three and allow any investigation, inquiry, or property of charitable, religious, cemetery, and educational hearing held or undertaken by the commission to be held or

A-33 undertaken by a single commissioner (previously, a panel of 9. Assessor responsible for assessments? three commissioners), among other changes. Other changes County assessors are responsible for locally assessed prop- include new language requiring the tax commissioner or erty. The county assessors are overseen by the Locally As- property tax administrator to appeal within 30 days after a sessed Property Section. http://tax.state.nv.us/DOAS%20 notice of appeal has been filed in order to intervene in cer- Centrally%20Assessed%20New%20Proposed.html. tain appeals. [Previously, no such time limit was specified]. The Nevada Tax Department assesses centrally assessed prop- Also, among additional changes, assessment hearings may erty. Nev. Rev. Stat. § 361.320. The Centrally Assessed Prop- be held via telephone conferences in specified circumstances. erty Section is responsible for appraising centrally assessed LB 384, Laws 2011 property. http://tax.state.nv.us/DOAS%20Centrally%20As- Preliminary Valuation Notices – Effective January 1, 2014, sessed%20New%20Proposed.html counties with populations of at least 150,000 inhabitants 10. Basis of valuation? must mail preliminary valuation notices to real property All Real Property - Taxable value: For vacant land, the full owners on or before January 15 of each year. The notices may cash; for improvements, replacement cost new less statutory be mailed or published on a website. LB 384, Laws 2011. depreciation, Nev. Rev. Stat. § 361.227. The value ofa busi- Nevada ness property is further determined through the cost, in- come, and market approaches. Nev. Admin. Code § 361.396. 1. Title of Property Tax System? Property Tax. Nev. Rev. Property is taxed at its assessed value, which is 35% of its Stat. § 361. taxable value. Nev. Rev. Stat. § 361.225. 2. Type of property taxed along with brief description? 11. Frequency of general revaluations? Locally assessed – Land, improvements and business personal Property in most counties is revalued annually, but in lieu property. of an annual reassessment a county can implement a cycle Centrally assessed Property of an interstate or inter-county whereby properties are reappraised at least once every five nature used directly in the operation of railroads, private car years. In the years in which property is not reappraised fac- lines, gas distribution pipelines, water, telephone, airlines, tors are applied to the improvement value and the land value. and electric power. Nev. Rev. Stat. § 361.320. Nev. Rev. Stat. § 361.260. 3. Person tax legally imposed on? 12. Date of last general revaluation? Tax is imposed on the owner. Nev. Rev. Stat. § 361.260. The last revaluation was for fiscal tax year 2013-14. 4. Unit of assessment? 13. Valuation date used for current assessment period? Each separate parcel unless (a) the location of improvements Generally, July 1st. Nev. Rev. Stat. § 361.260. causes two or more parcels to function as a singled parcel, (b) the 14. Main exemptions/reliefs? parcel is one of a group of parcels which qualifies for a subdivi- Agricultural property; Educational property; Government sion discount, or (3) in the professional judgment of the person property; Intangibles; Manufacturing and industrial prop- determining the value, the parcel is one of a group of parcels erty; Native American property on a reservation; Nonprofit which should be valued as a unit. Nev. Rev. Stat. § 361.227 (2). organizations; Recycling facilities; and Religious property; 5. Tax rate(s) set by? household furnishings; Registered Vehicles, NRS 361.228 Tax rate set by local government, and certified by the Ne- and generally, Nev. Rev. Stat. § 361.050 -361.187 . vada Tax Commission. Nev. Rev. Stat. §§ 361.445, 361.460, 15. Initial appeal process? 361.4547 The value of locally assessed property on the secured tax roll may 6. Current tax rate? be appealed to the county board of equalization. The deadline Varies by jurisdiction for filing the appeal is January 15.Nev. Rev. Stat. § 361.357(1). The value of locally assessed property on the unsecured roll which Property tax rates for Nevada local governments are avail- able on the website of the Department of Taxation at http:// was assessed on or after May 1 but on or before December 15may www.tax.state.nv.us/DOAS_FORMS/Final%20FY%20 be appealed to the county board of equalization. The deadline for 2013-2014%20Levied%207-15-13.pdf. The highest average appealing is January 15. Nev. Rev. Stat. § 361.357(2). The value of locally assessed property on the unsecured roll county wide tax rate is 3.66%, the lowest is 1.7772% and the th average is 3.1212% per $100 of assessed valuation. which was assessed after December 15 but on or before April 30 may be appealed to the state board of equaliza- 7. Frequency of adjustment of tax rate(s)? tion. The deadline for appealing is May 15.Nev. Rev. Stat. Annually. Nev. Rev. Stat. § 361.4547. § 361.360(3). 8. Tax collected by? The value of centrally assessed property may be appealed to For real property the County treasurer. For personal property the State Board of Equalization. The deadline for filing the the County treasurer or Assessor as indicated on the billing. appeal is January 15. Nev. Admin. Code § 361.7012(5).

A-34 16. Independent body to determine unresolved appeals? 9. Assessor responsible for assessments? A determination of the county board of equalization may be City “boards of assessors” assess local property. N.H. Rev. appealed to the state board of equalization. Generally, this is Stat. Ann. § 48:13. County commissioners are responsible not a de novo review, but is limited to the record made before for assessing unincorporated towns and unorganized places. the county board of equalization. N.H. Rev. Stat. Ann. § 81:1. The Division of Property Ap- A review of a determination of the state board of equaliza- praisal of the State Department of Revenue Administration tion may be sought in District Court. This is not a de novo is responsible for appraising state owned forest and recre- review, but is a judicial review of the record made before the ational land. N.H. Rev. Stat. Ann. § 21-J:9. state board. Deference is given to findings of fact made by 10. Basis of valuation? the state board of equalization. The selectmen shall appraise open space land (N.H. Rev. 17. Property tax revenue vs. other revenue? Stat. Ann. § 79-A:5), open space land with conservation Nevada collected approximately $3.50 billion in state and lo- restrictions (N.H. Rev. Stat. Ann. § 79-B:3), land with dis- cal property taxes in 2010, representing 34.49% of the $10.14 cretionary (N.H. Rev. Stat. Ann. § 79-C:7), resi- billion in state and local taxes collected. dences on commercial or industrial zoned land (N.H. Rev. At the state level, property taxes represented 6.22% of total Stat. Ann. § 75:11), earth and excavations (N.H. Rev. Stat. taxes collected. Ann. § 72-B), land classified as land under qualifying farm Property taxes accounted for approximately 72.86% of taxes structures (N.H. Rev. Stat. Ann. § 79-F), residential rental collected at the local government level. property subject to a housing covenant under the low-in- 18. Any significant recent changes and important issues? come housing tax credit program (N.H. Rev. Stat. Ann. § 75:1-a), and all other taxable property at its market value. N.H. Rev. Stat. Ann. § 75:1. New Hampshire 11. Frequency of general revaluations? 1. Title of Property Tax System? Property Tax. Polls, estates, and other classes of property are revalued every th 2. Type of property taxed along with brief description? 5 years. N.H. Const. Art. 6 ; N.H. Rev. Stat. Ann. § 75:8-a. Locally assessed – Real estate, including buildings, mills, Utility property is revalued every year. N.H. Rev. Stat. Ann. wharves, ferries, toll-bridges, locks and canals and aqueducts § 82:2. owned by private parties, any portion of the water of which is 12. Date of last general revaluation? sold or rented for pay. N.H. Rev. Stat. Ann. §§ 72:6, 7. Public Varies by jurisdiction utilities property and railroads are assessed in the town in 13. Valuation date used for current assessment period? which they are located. N.H. Rev. Stat. Ann. § 72:12. st April 1 . N.H. Rev. Stat. Ann. § 73:1. Centrally assessed – State owned forest and recreational land. 14. Main exemptions/reliefs? N.H. Rev. Stat. Ann. § 21-J:9. Charitable organizations; Educational organizations; Gov- 3. Person tax legally imposed on? ernmental and public property; Homesteads; Personal prop- Tax is imposed on the owner or to the person who is in pos- erty; and Religious organizations. session and actual occupancy, if that person consents to be 15. Initial appeal process? taxed. N.H. Rev. Stat. Ann. § 73:10. The initial appeal is to the municipality. http://www.nh.gov/ 4. Unit of assessment? Separate Parcel. btla/appeals/documents/CommonlyAskedQuestions-pt.pdf 5. Tax rate(s) set by? 16. Independent body to determine unresolved appeals? Commissioner of Revenue Administration. N.H. Rev. Stat. Unresolved appeals may be made to either the Board of Tax Ann. § 21-J:5. and Land Appeals or to the superior court in the county 6. Current tax rate? where the property is located. http://www.nh.gov/btla/ap- Combined rates vary by jurisdiction from 0% to 34.47% peals/documents/CommonlyAskedQuestions-pt.pdf http://www.revenue.nh.gov/munc_prop/property-tax-rates- 17. Property tax revenue vs. other revenue? related-data/2012/documents/2012TaxRateReport.pdf. New Hampshire collected approximately $3.24 billion in 7. Frequency of adjustment of tax rate(s)? state and local property taxes in 2010, representing 64.60% Annually. N.H. Rev. Stat. Ann. § 21-J:34. of the $5.02 billion in state and local taxes collected. At the state level, property taxes represented 18.53% of total 8. Tax collected by? taxes collected. Generally, local tax collectors. N.H. Rev. Stat. Ann. § 80:4. However, an appointed county tax collector collects for un- Property taxes accounted for approximately 98.43% of taxes incorporated towns and unorganized places. N.H. Rev. Stat. collected at the local government level. Ann. § 81:1. 18. Any significant recent changes and important issues?

A-35 New Jersey 15. Initial appeal process? 1. Title of Property Tax System? Property Tax. A taxpayer’s initial appeal is made to a county tax board, un- less the value of the property is over $1,000,000, in which 2. Type of property taxed along with brief description? case the initial appeal can be made straight to the State Tax Locally assessed – General business, most utility property, and Court of New Jersey. http://www.nj.gov/treasury/taxation/ real property. lpt/exam.shtml Centrally assessed – Railroad operating property. 16. Independent body to determine unresolved appeals? 3. Person tax legally imposed on? Unresolved appeals may be made to the State Tax Court of Tax is imposed on the owner. N.J. Stat. Ann. § 54:4-23. New Jersey. http://www.nj.gov/treasury/taxation/lpt/exam. shtml 4. Unit of assessment? Separate Parcel. 17. Property tax revenue vs. other revenue? 5. Tax rate(s) set by? New Jersey collected approximately $24.75 billion in state Municipal/local government. N.J. Const. art. VIII, § 1. and local property taxes in 2010, representing 48.43% of the 6. Current tax rate? $51.10 billion in state and local taxes collected. Varies widely by local jurisdiction http://www.state.nj.us/ At the state level, property taxes represented less than 1% of treasury/taxation/lpt/taxrate.shtml. total taxes collected. Property taxes accounted for approximately 98.30% of taxes 7. Frequency of adjustment of tax rate(s)? Annually. collected at the local government level. 8. Tax collected by? 18. Any significant recent changes and important issues? Local tax collectors. N.J. Stat. Ann. § 54:4-64. 9. Assessor responsible for assessments? Locally assessed properties are assessed by the local assessors. New Mexico N.J. Stat. Ann. § 54:4-23. Centrally assessed properties are 1. Title of Property Tax System? Property Tax. assessed by the Commissioner of the Division of Taxation. 2. Type of property taxed along with brief description? N.J. Stat. Ann. § 54:29A-17. Locally assessed – General business property, real and personal, 10. Basis of valuation? that is not centrally assessed, residential real estate. Current true value (market value) for most properties, however Centrally assessed – Operating property of railroads, airlines, qualified farmland is valued based on its productive capabili- utilities, nonutility merchant electric generation and trans- ties. http://www.nj.gov/treasury/taxation/lpt/genlpt.shtml mission, telecom companies, pipelines, mining, and certain 11. Frequency of general revaluations? construction personal property. The complete list is located Real property does not have a statutory or Constitutional re- in N.M. Stat. Ann. § 7-36-2. valuation schedule, however a County Board of Taxation can 3. Person tax legally imposed on? revalue or reassess with approval from the Director of the Divi- Owner. N.M. Stat. Ann. § 7-38-47. sion of Taxation. Spot assessing is not allowed, however “assess- 4. Unit of assessment? Separate Parcel. ment maintenance” is allowed outside of a municipal reassess- ment, so long as a legitimate reason exists. http://www.nj.gov/ 5. Tax rate(s) set by? treasury/taxation/pdf/assessorshandbook.pdf (pp.74, 491). Secretary of Finance and Administration. N.M. Stat. Ann. § 7-38-33. 12. Date of last general revaluation? Varies by jurisdiction 6. Current tax rate? Varies by jurisdiction, but the county/school district rates are 13. Valuation date used for current assessment period? st limited by N.M. Stat. Ann. § 7-37-7. Each county lists their Real property is valued on October 1 . N.J. Stat. Ann. § 54:4-23. cities and their combined property tax mill rate in an annual Tangible personal property used in business subject to taxa- st certificate http://www.nmdfa.state.nm.us/Certificate_of_ tion is valued on January 1 . N.J. Stat. Ann. § 54:4-2.46. Property_Tax.aspx. Rates generally run between 0.75% and 14. Main exemptions/reliefs? 1.5% of assessed value. There is a $250 deduction available on real or personal prop- 7. Frequency of adjustment of tax rate(s)? erty of qualified war veterans or their unmarried surviving Annually. N.M. Stat. Ann. § 7-38-33. spouses. http://www.nj.gov/treasury/taxation/lpt/exam.shtml A 100% property tax exemption is available to 100% disabled 8. Tax collected by? war veterans or unmarried surviving spouses. County Treasurer. N.M. Stat. Ann. § 7-38-36. There is a $250 deduction for taxpayers 65 or older, or a per- 9. Assessor responsible for assessments? manently and totally disabled individual or their unmarried County assessors conduct local assessments, while the Taxa- surviving spouse age 55 or more. tion and Revenue Department conduct central assessments: A-36 all notices of valuation come from county assessors. N.M. primarily for the benefit of veterans and their families is ex- Stat. Ann. § 7-36-2. empt from property taxation. H.B. 437, Laws 2011 10. Basis of valuation? Market value, unless specified inN.M. Stat. Ann. §§ 7-36-20 New York – 33 or N.M. Stat. Ann. § 7-36-15. 1. Title of Property Tax System? Property Tax, or Real 11. Frequency of general revaluations? Property Tax. Annually. N.M. Stat. Ann. § 7-38-7. However, with written 2. Type of property taxed along with brief description? approval from the director, county assessors may reappraise Locally assessed – Only real property every two years. N.M. Code R. § 3.6.5.13. Centrally assessed – Real property of special franchises 12. Date of last general revaluation? 3. Person tax legally imposed on? Varies by jurisdiction Typically the owner, but can also be imposed on an interest owned as a renter. N.Y. Real Prop. § 926. 13. Valuation date used for current assessment period? January 1st. N.M. Stat. Ann. § 7-38-7. 4. Unit of assessment? Separate Parcel. 14. Main exemptions/reliefs? 5. Tax rate(s) set by? Head of family exemption of $2,000 is allowed. N.M. Stat. Local tax collecting officer.N.Y. Const. § 10. Ann. § 7-37-4 6. Current tax rate? Veteran exemption of up to $4,000 per year. N.M. Stat. Ann. Varies by jurisdiction as listed in § 7-37-5 http://www.tax.ny.gov/research/property/reports/fvtaxrates/ Disabled veterans receive a full exemption from property tax. overall_county_12.htm. N.M. Stat. Ann. § 7-37-5.1. There are also exemptions found In 2012, the highest rate (full value) was $48.80 per $1,000, the in the state constitution for charitable use, educational use, lowest rate was $14.90 per $1,000, and the average statewide government property, etc. Agricultural land is not exempt, average (excluding New York City) was $28.20 per $1,000. but subject to a non-market value valuation method. Most Nassau County and NYC each has a four property class sys- tangible property now owned by a business is exempt. In- tem, and thus there is no general county or city wide tax rate. tangible property is not strictly speaking exempt, but is not in 2012 the statewide property tax rate (including New York subject to tax. City) was $27.50 per $1,000 http://www.tax.ny.gov/research/ 15. Initial appeal process? property/reports/fvtaxrates/statewide_12.htm For centrally assessed property, the taxpayer may appeal to 7. Frequency of adjustment of tax rate(s)? the Property Tax Division, or after payment, file a claim for Annually. N.Y. Const. § 10. refund in the District Court for Santa Fe County. 8. Tax collected by? For locally assessed property, appeals are made to the County Local tax collectors. N.Y. Real Prop. Tax Law § 904 Valuation Protests Board. http://www.tax.newmexico.gov/ 9. Assessor responsible for assessments? SiteCollectionDocuments/TRD-Forms/Property-Tax/pro- Generally the local assessor. N.Y. Real Prop. Tax Law § 202 test_pamplet05.pdf The Commissioner of Taxation and Finance is responsible for 16. Independent body to determine unresolved appeals? assessing special franchises. N.Y. Real Prop. Tax Law § 202 A locally assessed property appeal is made to the district court. Centrally assessed properties are appealed to the court 10. Basis of valuation? of appeals. Property must be valued at its current use. The exception is vacant land that is used for no purpose; its value may in- 17. Property tax revenue vs. other revenue? stead by based on (Opinion of ORPTS New Mexico collected approximately $1.30 billion in state Counsel, Vol. 10, No. 45). and local property taxes in 2010, representing 19.83% of the $6.55 billion in state and local taxes collected. 11. Frequency of general revaluations? At the state level, property taxes represented less than 1.38% Varies widely among jurisdictions, as there is no statewide of total taxes collected. requirement. Some jurisdictions revalue annually, while oth- Property taxes accounted for approximately 55.80% of taxes ers have not reassessed in many decades. http://www.tax. collected at the local government level. ny.gov/pit/property/learn/eqrates.htm 18. Any significant recent changes and important issues? 12. Date of last general revaluation? Varies by jurisdiction. Veterans’ Organizations – A new property tax exemption has 13. Valuation date used for current assessment period? been enacted for a veterans’ organization. Specifically, for tax Generally, March 1st for taxable status and the preceding July years beginning on or after January 1, 2012, the property of a 1st for value, but some jurisdictions use different calendar congressionally chartered veterans’ organization that is used dates. N.Y. Real Prop. Tax Law § 301. A-37 14. Main exemptions/reliefs? tort actions that exceed 5% of a locality’s levy or growth in School Tax Relief Program (STAR) is available as either ba- tax levies due to new construction. Ch. 97 (S.B. 5856), Laws sic STAR or enhanced STAR. Basic STAR is available to all 2011; effective July 1, 2011 homeowners who own and live in the home as their primary STAR exclusion -- STAR exemption is subject to removal if residence, and who earn $500,000 or less as a household. owner of residence becomes delinquent in payment of state This allows an exemption up to the first $30,000 in value for taxes. school tax purposes. Enhanced STAR is available to home- Homeowners receiving the Basic STAR exemption were owners 65 years of age or older, who earn $500,000 or less as required to re-register for this exemption in 2013. Such re- a household. This allows an exemption up to the first $63,300 registration was implemented in order to detect instances in value for school tax purposes. http://www.tax.ny.gov/pit/ where spouses were each receiving the STAR exemption on property/star/index.htm separate residences (by law a married couple is entitled to a Various municipalities and school districts also allow up to STAR exemption on no more than one residence, unless the 50% exemptions for income eligible senior citizens. These spouses are living apart due to legal separation). districts have some flexibility in setting their own baselines New York City – New York property tax exemption provi- for income, which are typically significantly lower than the sions that are allowed for new multiple dwellings in New STAR limits. http://www.tax.ny.gov/pit/property/exemption/ York City (the §421-a, Real Property Tax Law, exemption) seniorexempt.htm are amended to extend the construction period for eligibil- Various veteran exemptions are available for county and mu- ity from July 1, 1992, through December 29, 2010, to July 1, nicipal taxes, but not for school district taxes. These include 1992, through June 15, 2015. Ch. 97 (S.B. 5856), Laws 2011 the Alternative Veterans Exemption, Cold War Veterans Ex- Flood Damage Relief – Authorizes retroactive assessment re- emption, and the Eligible Funds exemption. http://www.tax. duction for certain catastrophically impacted properties. Ch. ny.gov/pit/property/exemption/vetexempt.htm 424 (S.B. 5849), Laws 2013 Taxpayers with disabilities with limited income can receive Agricultural Assessment Exemptions – Limits increase in value exemptions of up to 50% depending on if the community used in taxing eligible agricultural land to 2% annually (limita- offers an exemption. http://www.tax.ny.gov/pit/property/ex- tion was 10% in prior years) Ch. 385 (S.B. 1952), Laws 2013 emption/disablexempt.htm Various exemptions also apply in regard to agricultural and North Carolina forest property, and to many other types. http://www.tax. 1. Title of Property Tax System? Property Tax. ny.gov/research/property/assess/valuation/agindex.htm 2. Type of property taxed along with brief description? 15. Initial appeal process? Locally assessed – All county property that is not subject to cen- Either the local assessor or the local board of assessment re- tral assessment or exempted under N.C. Gen. Stat. § 105-275. view. N.Y. Real Prop. Tax Law §§ 512, 524. New York City Centrally assessed – Public service companies (railroads, bus and Nassau County have special commissions to handle ap- lines, motor freight carriers, airlines, telecom companies, peals, which allow filing grievances online. electric power companies, gas companies, and pipeline com- 16. Independent body to determine unresolved appeals? panies). N.C. Gen. Stat. § 105-289. Unresolved appeals may be made in the form of a small 3. Person tax legally imposed on? claims assessment review (owner-occupied residential prop- Property is listed in the name of the owner. N.C. Gen. Stat. erty only) or in the special term of the supreme court in the §§ 105-302, 306. judicial district in which the assessment to be reviewed was 4. Unit of assessment? Separate Parcel. made. N.Y. Real Prop. Tax Law § 702. 5. Tax rate(s) set by? 17. Property tax revenue vs. other revenue? County and municipality taxing authorities. N.C. Gen. Stat. New York collected approximately $49 billion in state and § 105-347. local property taxes in 2012, representing 32.7% of the $150 billion in state and local taxes collected. 6. Current tax rate? At the state level, property taxes represented 0% of total taxes Varies by jurisdiction. The tax rates are located athttp://www. collected. dor.state.nc.us/publications/countyrates.html. The rates vary Property taxes accounted for approximately 60.0% of taxes from $.2790 per $100 to $1.030 per $100. collected at the local government level. 7. Frequency of adjustment of tax rate(s)? 18. Any significant recent changes and important issues? Annually. N.C. Gen. Stat. § 105-347. Property Tax Limitation – Legislation has been enacted that 8. Tax collected by? caps property tax increases at 2% or the rate of inflation, Local tax collectors. N.C. Gen. Stat. § 105-350. Taxes on reg- whichever is less. The cap would be subject to limited ex- istered motor vehicles collected by NCDMV. N.C. Gen. Stat. ceptions, such as judgments or court orders arising out of § 105-330.

A-38 9. Assessor responsible for assessments? At the state level, property taxes represented 0% of total taxes Locally assessed properties are assessed by the county asses- collected. sors. N.C. Gen. Stat. § 105-296. Centrally assessed properties Property taxes accounted for approximately 76.59% of taxes are assessed by the Department of Revenue. N.C. Gen. Stat. collected at the local government level. § 105-289. 18. Any significant recent changes and important issues? 10. Basis of valuation? Use Valuation: Business Entities – For taxable years after July Current true value (market value) for most properties. N.C. 1, 2011, land owned by a business entity is classified and as- Gen. Stat. § 105-285. However agricultural, horticultural and sessed at its present-use value (e.g., agricultural land, forest forest land can be valued at present use with the filing of a land), the land must have been owned by one or more of the proper application. N.C. Gen. Stat. § 105-277.4. following for the four years immediately preceding January 11. Frequency of general revaluations? 1 of the year for which the benefit is claimed: (1) the busi- Real property must be appraised at least once every 8 years, ness entity; (2) a member of the business entity; or (3) an- but a county can reappraise all real property on a shorter cy- other business entity whose members include a member of cle if so desired or if their sales ratio goes below 85% or over the business entity that currently owns the land. Ch. 9 (H.B. 115%. N.C. Gen. Stat. § 105-286. 123), Laws 2011 Roadway Corridors – Real property on which a building or 12. Date of last general revaluation? Varies by jurisdiction other structure is located and that lies within a transportation 13. Valuation date used for current assessment period? corridor is designated a special class of property and is taxable January 1st. N.C. Gen. Stat. § 105-285. at 50% of the appraised value, if the property has not been sub- 14. Main exemptions/reliefs? divided. The provision for the reduced assessment is effective An exemption is allowed on the greater of the first $25,000 for taxes imposed for taxable years beginning on or after July or 50% of assessed value for taxpayers 65 or older with in- 1, 2011, and before July 1, 2021. Ch. 30 (S.B. 107), Laws 2011 comes of less than $28,100. This exemption also applies to Nonprofit Housing – The property tax exemption period for a totally and permanently disabled taxpayers. http://www.dor. nonprofit organization holding real property as a future site state.nc.us/downloads/av9_2013.pdf for housing for low- or moderate-income individuals and families has been extended from five years to 10 years.Ch. Disabled veterans and surviving spouses are allowed an ex- 368 (H.B. 417), Laws 2011 emption of $45,000 of the appraised value. http://www.dor. state.nc.us/downloads/av9_2013.pdf Interest on Overpayments – For taxable years beginning on or after January 1, 2011, when an order of a county board of equal- A circuit breaker deferment also exists for taxpayers 65 or ization and review reduces the valuation of property, for prop- older and for totally and permanently disabled taxpayers. For erty tax purposes, or removes the property from the tax lists and taxpayers with income under $28,100, they will only be re- based on the order, the taxpayer has paid more tax than is due sponsible for 4% of their tax. Taxpayers with income under on the property, the taxpayer is entitled to receive interest on $42,150 will be responsible for 5%. http://www.dor.state. the overpayment at the indicated rate. Interest accrues from the nc.us/downloads/av9_2013.pdf later of the date the tax was paid or the date the tax would have The amount unpaid is not exempted however and remains been considered delinquent. Ch. 3 (S.B. 76), Laws 2011 a lien on the property. Additionally, interest accrues on the Important issues regarding the burden of proof on the as- deferred amount. sessment officials have recently arisen in the North Carolina 15. Initial appeal process? Court of Appeals. These cases are In the Matter of Appeal of: A taxpayer may contact the tax office informally or they IBM Credit Corporation, N.C. Ct. of App. (Aug. 21, 2012) may appeal to the local board of equalization and review. and In the Matter of Appeal of: Parkdale Mills and Parkdale The board is made up of either the board of county commis- America, N.C. Ct. of App. (Mar. 5, 2013). These cases show sioners, or a specially appointed board. http://www.dor.state. that there is currently a strong push towards providing an nc.us/downloads/av9_2013.pdf equal burden to prove valuation in the appeals process. Proposed legislation to exclude customized software from 16. Independent body to determine unresolved appeals? property taxation (SB490) was passed by the NCGA and Unresolved appeals may be made to the State Board of Equal- will become effective for the 2014 tax year. ization and Review known as the Property Tax Commission. http://www.dor.state.nc.us/downloads/av9_2013.pdf North Dakota 17. Property tax revenue vs. other revenue? North Carolina collected approximately $8.57 billion in state 1. Title of Property Tax System? Property Tax. and local property taxes in 2010, representing 26.20% of the 2. Type of property taxed along with brief description? $32.71 billion in state and local taxes collected. Locally assessed – Real property and general business property

A-39 Centrally assessed – Utilities, railroads, pipelines, air transportation. Up to $150,000 true and full value of new single family, con- All centrally assessed properties are listed at http://www.nd.gov/ dominium, and townhouse residential property excluding tax/property/pubs/guide/propertynotassessedbylocalassessors. land is exempt for the first two taxable years after the taxable pdf?20130321090852. [The only express company ever centrally year in which construction is completed and the residence is assessed was Railway Express, which is no longer assessed]. owned and occupied for the first time, so long as: 1) the gov- 3. Person tax legally imposed on? erning body has approved the exemption by resolution and Owner. N.D. Cent. Code. § 57-02-31. 2) special assessments and taxes on the property upon which the residence is situated are not delinquent. 4. Unit of assessment? Separate Parcel. More information is listed at http://www.nd.gov/tax/prop- 5. Tax rate(s) set by? erty/pubs/guide/newsinglefamilyresidentialproperties. County auditor. N.D. Cent. Code § 57-15-02. pdf?20130321120751. 6. Current tax rate? 15. Initial appeal process? Varies amongst taxing jurisdiction, although the rate cannot Initial appeals are made to local boards of equalization. N.D. exceed 23 mills. N.D. Cent. Code § 57-15-06. There are cer- Cent. Code § 57-09-04. tain properties that are not subject to the 23 mill limit. N.D. Cent. Code § 57-15-06.8. 16. Independent body to determine unresolved appeals? Unresolved appeals are next appealed to the board of county 7. Frequency of adjustment of tax rate(s)? Annually. commissioners. Appeals may be made to the State Board of 8. Tax collected by? County Treasurer. Equalization, but the taxpayer must first appeal to the local and 9. Assessor responsible for assessments? county boards of equalization. N.D. Cent. Code § 57-12-06. The city assessor,N.D. Cent. Code § 40-19-01, although for 17. Property tax revenue vs. other revenue? unorganized territories, the assessor districts are valued by North Dakota collected approximately $.69 billion in state district assessors, N.D. Cent. Code § 57-02-33. and local property taxes in 2010, representing 19.78% of the 10. Basis of valuation? $3.48 billion in state and local taxes collected. True and full value, although the meaning differs based on At the state level, property taxes represented less than 1% of the type of property. total taxes collected. For commercial and residential properties, it is the prop- Property taxes accounted for approximately 82.37% of taxes erty’s market value http://www.nd.gov/tax/property/pubs/ collected at the local government level. guide/conceptsresidentialcommercialproperty.pdf?2013 18. Any significant recent changes and important issues? 0321092323 Veterans – Effective for tax years beginning after December For agricultural properties, it is the property’s capitalized av- 31, 2010, the North Dakota property tax homestead credit for erage annual gross return http://www.nd.gov/tax/property/ qualifying disabled veterans is modified. A disabled veteran pubs/guide/valuationconceptsagriculturalproperty.pdf?2013 with a service-connected disability of 50% or greater, or an 0321092019 unremarried surviving spouse, is eligible for a credit applied 11. Frequency of general revaluations? against the first $5,400 (previously $120,000) of the true and Annually. N.D. Cent. Code § 57-02-11. full valuation of the fixtures, buildings, and improvements of 12. Date of last general revaluation? 2012. the person’s homestead equal to the percentage of the disabled veteran’s disability compensation rating for service-connected 13. Valuation date used for current assessment period? disabilities. Ch. 446 (H.B. 1116), Laws 2011 February 1st. N.D. Cent. Code § 57-02-11. Agricultural Land – Effective for tax years beginning after De- 14. Main exemptions/reliefs? cember 31, 2010, some land previously used for agriculture, Religious and charitable properties are fully exempted but now used to extract oil, natural gas, or subsurface miner- Homestead is available for taxpayers 65 and older, as well as als, may remain under the classification of agricultural land for totally disabled persons of any age. These taxpayers are purposes of North Dakota property tax. Specifically, land that eligible for a reduction in the value of their homestead up to was assessed as agricultural property at the time the land was a maximum true and full value of $100,000 if their income put to use for the extraction of oil, natural gas, or subsurface did not exceed $26,000 and their total assets excluding the minerals must continue to be assessed as agricultural property, first $100,000 unencumbered value of the homestead did not if the remainder of the owner’s parcel of property continues to exceed $75,000. The exemption percentage varies based on qualify as agricultural property for purposes of an assessment. income, and ranges from 100% to 20%. Ch. 442 (H.B. 1071), Laws 2011 More information is listed at http://www.nd.gov/tax/ Potash Tax – Effective for taxable production occurring after June property/pubs/guide/creditsforndhomeownersrenters. 30, 2011, a 2% North Dakota property tax is imposed on all pot- pdf?20130321120018 ash produced within North Dakota and a 4% tax is imposed on

A-40 the gross value of all subsurface mineral by-products produced 11. Frequency of general revaluations? during the processing of potash. [The payment of the tax on pot- Real property is updated every 3 years with full reappraisal ash and by-products of potash is in lieu of all property taxes by every 6 years. the state, counties, cities, school districts, and other taxing districts 12. Date of last general revaluation? on any property rights attached to producing potash and potash Ohio’s 88 counties are divided into three groups, and those by-products; leases; machinery, appliances, and equipment used in groups are further divided so that one subgroup undergoes and around any well producing potash or potash by-products; and reappraisal while the other subgroup undergoes a less de- on any investment in property. The land and the processing plant, tailed update. mining facility, or satellite facility must be assessed and taxed as other property within the taxing district in which the property is 13. Valuation date used for current assessment period? st situated. Ch. 486 (H.B. 1046), Laws 2011 January 1 .Ohio Rev. Code Ann. § 5705.61. Charitable Exemption: Housing – Effective for tax years be- 14. Main exemptions/reliefs? ginning after December 31, 2011, property will not be con- Religious, charitable, public, and educational properties are sidered used wholly or in part for charitable or public pur- fully exempted poses if rental units are leased to tenants based on income Up to $25,000 of the market value can be shielded through levels that enable the owner to receive a federal low-income the homestead exemption. Seniors 65 and older, as well as housing income tax credit. Ch. 444 (S.B. 2049), Laws 2011. totally and permanently disabled homeowners are eligible to apply with their local county auditor. Ohio Agricultural land is taxed at its use value rather than its mar- 1. Title of Property Tax System? Real Property Tax. ket value, thus providing a substantial savings. 2. Type of property taxed along with brief description? 15. Initial appeal process? Locally assessed – Real property except railroad property Tax Commissioner (public utility property) or county boards of revision (real property except railroads.) Centrally assessed – Railroad property 16. Independent body to determine unresolved appeals? 3. Person tax legally imposed on? Owner. Unresolved appeals are appealed to the Ohio Board of Tax 4. Unit of assessment? Separate Parcel. Appeals. All complaints must be resolved, but those deter- 5. Tax rate(s) set by? minations may be appealed to the Ohio board of tax appeals. The tax rate is set by a combination of all of the local taxing 17. Property tax revenue vs. other revenue? jurisdictions. Examples of such jurisdictions include school At the state level, property taxes represented 0% of total taxes districts, counties, municipalities, townships, and special ser- collected. vice districts. Ohio Rev. Code Ann. § 5705.03. Tax rates in 18. Any significant recent changes and important issues? excess of ten mills are set by voters. Exemption Applications – Beginning in tax year 2011, appli- 6. Current tax rate? cations for exemption must be filed with the county auditor Varies amongst taxing jurisdiction with different mill- (rather than the tax commissioner) for: 1) a public or age rates for public utility tangible personal property, class highway; 2) property of the federal government; 3) addi- 1 real property, and class 2 real property. http://www.tax. tions or improvements to an existing building or structure ohio.gov/tax_analysis/tax_data_series/publications_tds_ that belongs to the state or a political subdivision and that property/12atratd.aspx. For tax year 2011 (affecting bills paid is exempted from taxation as property used exclusively for in 2012), the average rate applied to agricultural and residen- a public purpose; and 4) property of the boards of trustees tial property was 61.11 mills, and the average rate applied to and of the housing commissions of the state universities, the all other property was 70.02 mills. Northeastern Ohio Universities college of Medicine, and of 7. Frequency of adjustment of tax rate(s)? the state, to be exempted from taxation under continuing law Annually. Ohio Rev. Code Ann. § 5705.03. under which the property must be held for the use and ben- efit of those institutions. H.B. 225, Laws 2011. 8. Tax collected by? County Treasurer.

9. Assessor responsible for assessments? Oklahoma County assessors assess all locally assessed property. The Tax 1. Title of Property Tax System? Property Tax. Commissioner assesses the real property of railroads used in railroad operations and the tangible personal property of all 2. Type of property taxed along with brief description? public utilities, including railroads. Locally assessed – Real and tangible personal property 10. Basis of valuation? Centrally assessed – Railroads and public service corporations Market value. Ohio Rev. Code Ann. § 5713.03. 3. Person tax legally imposed on? Owner.

A-41 4. Unit of assessment? Separate Parcel. 18. Any significant recent changes and important issues? 5. Tax rate(s) set by? Property Tax Bills – A local county treasurer may provide by County excise board, http://www.tax.ok.gov/advform/TES- electronic mail a statement to an Oklahoma property tax- 14.pdf (p.15) payer showing the ad valorem taxes due and owing that have been assessed against the taxpayer’s real and personal prop- 6. Current tax rate? erty. In lieu of a regular mailing, the treasurer may send the Varies amongst taxing jurisdiction. There is no central re- statement to the taxpayer using electronic mail, provided that source for tax rates. the taxpayer has previously submitted a written request to re- 7. Frequency of adjustment of tax rate(s)? ceive such a statement by electronic mail instead of by regular Annually. http://www.tax.ok.gov/advform/TES-14.pdf (p.15) mail. Ch. 79 (S.B. 104), Laws 2011 8. Tax collected by? County Treasurer. Oregon 9. Assessor responsible for assessments? County Assessor. 1. Title of Property Tax System? Property Tax. 10. Basis of valuation? 2. Type of property taxed along with brief description? Generally, current market value, although agricultural land Locally assessed – Property subject to taxation includes all pri- is valued on its capacity to produce livestock or crops. Okla. vately owned real property (e.g., land, buildings, and fixed Stat. tit. 68, § 2817. machinery and equipment), manufactured homes, and tan- 11. Frequency of general revaluations? gible personal property used in a business Every four years. Centrally assessed – Railroads, air transportation, communi- 12. Date of last general revaluation? cation providers, utilities, pipelines, toll bridge owners, and Varies amongst jurisdiction. other properties listed in Or. Rev. Stat. § 308.515. Includes 13. Valuation date used for current assessment period? both tangible and intangible property. st January 1 . Okla. Stat. tit. 68, § 2817. 3. Person tax legally imposed on? 14. Main exemptions/reliefs? Owner (or user for centrally assessed property) Religious and charitable properties are fully exempted 4. Unit of assessment? Homestead exemption of $1,000 from the value of the prop- Separate Parcel (except for centrally assessed property erty applies for taxpayers who own and make the property st 5. Tax rate(s) set by? their principal residence by January 1 . The tax rate is generally set by the local taxing district. Or. An additional $1,000 exemption may apply if the annual Rev. Stat. § 310.090. household income is $20,000 or less. A refund of 1% of your may be given up to 6. Current tax rate? $200 if annual household income is $12,000 or less and the Varies amongst taxing jurisdiction. In 2013, the highest tax taxpayer is 65 or older or totally disabled. rate was $13.47 per $1,000, the lowest tax rate was $4.32 Full exemptions for homestead real and personal property per $1,000, and the average was $11.85 per $1,000 http:// may be given to 100% disabled veterans or surviving spouses www.oregon.gov/dor/STATS/docs/303-405-12/property- 15. Initial appeal process? tax-stats_303-405_2012-13.pdf (p. 31). Locally assessed – Assessor 7. Frequency of adjustment of tax rate(s)? Centrally assessed – State Board of Equalization Annually. Or. Rev. Stat. § 310.010. 16. Independent body to determine unresolved appeals? 8. Tax collected by? Locally assessed – County board of equalization, then to the Local Tax Collector district court 9. Assessor responsible for assessments? Centrally assessed – Unresolved appeals go to the Court of Locally assessed – County assessor. Or. Rev. Stat. § 308.210. Tax Review Centrally assessed – Department of Revenue. Or. Rev. Stat. § 17. Property tax revenue vs. other revenue? 308.515. Oklahoma collected approximately $2.40 billion in state and local property taxes in 2010, representing 21.05% of the 10. Basis of valuation? $11.40 billion in state and local taxes collected. The lesser of real market value or maximum assessed value. At the state level, property taxes represented 0% of total taxes Maximum assessed value increases are capped at 3%. Or. Rev. collected. Stat. §§ 308.232, 308.146. Property taxes accounted for approximately 55.55% of taxes 11. Frequency of general revaluations? collected at the local government level. Annually. Or. Rev. Stat. § 308.210.

A-42 12. Date of last general revaluation? counties may impose a surtax on state personal, corporate 2012. income or excise tax; a tax on telecommunication services; 13. Valuation date used for current assessment period? impose any assessment county governing body is lawfully January 1st. Or. Rev. Stat. § 308.210. capable of imposing; use existing sources of county revenue; or any combination of previously identified funding sources. 14. Main exemptions/reliefs? The bill provides that a public safety fiscal emergency procla- Federal property fully exempted mation terminates after 18 months unless Governor extends State and local government property fully exempted declaration for up to 18 more months. The Governor shall Farmland and forestland special assessment programs terminate public safety fiscal emergency by proclamation Religious and charitable properties are fully exempted when emergency no longer exists or threat of emergency has Disabled veteran and surviving spouse exemptions apply in passed. Public safety fiscal emergency proclaimed by Gover- the amounts of $18,448 or $22,138 with a yearly increase of nor may be terminated at any time by action of Legislative 3%. Assembly. Termination of a public safety fiscal emergency A property tax deferral system is in place where the state will shall apply to: Income and excise tax years beginning on or pay the property taxes and take a lien on properties of tax- after January 1 following the termination and other assess- payers age 62 or over (as well as disabled citizens), who have ment reporting periods beginning on or after first day of first owned and lived on the property for at least 5 years, with calendar quarter following termination. Sunsets provisions household annual income less than $41,500, and a net worth of this Act on January 2, 2018. Declares emergency, effective of less than $500,000. upon passage. Ch. 753 (H.B 3453 B), Laws 2013. • These deferral payments accrue 6% interest com- Communications Companies – There is discriminatory treat- pounded annually. ment of communications companies. The DOR’s chief liti- 15. Initial appeal process? gator and legal advisor thinks many companies are telecom Locally assessed – To the assessor or the county board of prop- firms and should be centrally assessed. erty tax appeals Centrally assessed – To the director of the Department of Pennsylvania Revenue 1. Title of Property Tax System? Real Property Tax. 16. Independent body to determine unresolved appeals? 2. Type of property taxed along with brief description? Locally assessed – Unresolved appeals are made to the Magis- Real property only, although there are special considerations trate Division of the Oregon Tax Court, , then the Regular for certain types (utility, forest and timber lands, and coal and Division, and then the Oregon Supreme Court (as a matter mineral lands). of right). 3. Person tax legally imposed on? Centrally assessed – Unresolved appeals are made to the Mag- Generally, the owner. However, if the owner does not pay, istrate Division of the Oregon Tax Court, then the Regular then it may be imposed on a lessee of the real property (the Division, and then the Oregon Supreme Court (as a matter amount paid will be deducted from any rent or amounts due of right). to the owner). 17. Property tax revenue vs. other revenue? 4. Unit of assessment? Separate Parcel. Oregon collected approximately $5.2 billion in local prop- erty taxes in fiscal year 2012-13. 5. Tax rate(s) set by? The tax rate is generally set by the county commissioner. 72 18. Any significant recent changes and important issues? Pa. Cons. Stat. § 1770. Public Safety Emergencies – New measure allows the Gover- nor to determine the fiscal conditions that compromise the 6. Current tax rate? ability of a county to provide a minimally adequate level of Varies amongst taxing jurisdiction. The highest rate is 55 services and declare a “Public Safety Fiscal Emergency” in mills and the lowest is 0 mills. a county. After obtaining written authorization signed by http://munstatspa.dced.state.pa.us/ReportViewer.aspx? governing body of each county subject to proclamation, the R=CountyTaxSummary&reporting_year=2013& Governor may enter into a written intergovernmental agree- rendering=H ment (IGA) with the affected counties and other counties 7. Frequency of adjustment of tax rate(s)? for performance of functions and activities of the affected Annually. 72 Pa. Cons. Stat. § 1770. county. The cost of the services provided under an IGA will 8. Tax collected by? Local Tax Collector. be shared between state and counties parties to the IGA. The state will bear 50 percent of costs and affected counties will 9. Assessor responsible for assessments? bear 50 percent of cost, To pay for the county’s portion of cost, Counties elect and cities appoint their own assessors.

A-43 10. Basis of valuation? 5. Tax rate(s) set by? Generally fair market value, although agricultural, forest, Tax rate is set by the municipal governments acting within timber lands, and a few other special types may be valued the parameters of a state Act. at their current use value. 72 Pa. Cons. Stat. §§ 5020.402, 6. Current tax rate? 5490.3. Puerto Rico has 78 municipalities, each with its own per- 11. Frequency of general revaluations? sonal and real property tax rates. For fiscal year 2013-2014, Generally annually, however Allegheny County revalues ev- the highest/lowest tax rates on personal and real property ery 3 years. were 9.58%/5.80% and 11.83%/8.03%, respectively. 12. Date of last general revaluation? 7. Frequency of adjustment of tax rate(s)? Annually. Varies amongst localities 8. Tax collected by? 13. Valuation date used for current assessment period? Municipal Revenue Collection Center, known by its Span- Varies amongst localities ish acronym “CRIM.” 14. Main exemptions/reliefs? 9. Assessor responsible for assessments? Religious and charitable properties are fully exempted For personal property the tax is self-assessed and for real The property tax/rent rebate program benefits citizens age 65 property the tax is assessed by the Municipal Revenue Col- and over; widows and widowers age 50 and older; and people lection Center. with disabilities age 18 and over. The income limit is $35,000 10. Basis of valuation? for homeowners and $15,000 annually for renters with half For personal property, the value is assessed on the basis of of Social Security income being excluded. fair market value at January 1st of each year. For real property, Seniors also receive varying levels of rebates depending on the value is assessed on the basis of 1958 reproduction costs. which city they live in. An additional 50% is given if the 11. Frequency of general revaluations? senior lives in Philadelphia, Pittsburgh, or Scranton with an Property values in Puerto Rico have not been evaluated since additional 50% on top of that for the rest of the state. 1958. 15. Initial appeal process? 12. Date of last general revaluation? 1958. County level appeals board 13. Valuation date used for current assessment period? 16. Independent body to determine unresolved appeals? January 1st of the current year. Court of Common Pleas for whichever county the initial ap- peal was made in. 14. Main exemptions/reliefs? Public Property 17. Property tax revenue vs. other revenue? Household property used for personal use Pennsylvania collected approximately $16 billion in state Non-for profit entities and local property taxes in 2010, representing 30.37% of the Property owned by a tax-exempt business $52.71 billion in state and local taxes collected. Farm property At the state level, property taxes represented less than 1% of total taxes collected. 15. Initial appeal process? The taxpayer initial process is to request an administrative Property taxes accounted for approximately 70.77% of taxes review before the Municipal Revenue Collection Center. collected at the local government level. 16. Independent body to determine unresolved appeals? 18. Any significant recent changes and important issues? Court of First Instance (trial court). Puerto Rico 17. Property tax revenue vs. other revenue? 1. Title of Property Tax System? Since the tax rates vary by municipality, this exercise would require a separate calculation for each of the 78 municipalities. Title 21 of Laws of Puerto Rico Annotated, Municipalities. 18. Any significant recent changes and important issues? 2. Type of property taxed along with brief description? Real and Personal property taxes. On December 9, 2013 the Puerto Rico legislature enacted into law a temporary amnesty for real and personal property 3. Person tax legally imposed on? taxes. Pursuant to Act 145, taxpayers with outstanding prop- As a general rule, the tax is imposed on the owner. erty tax obligations can elect to pay the principal and have 4. Unit of assessment? all interest, penalties and surcharges waived. As mandated by On each separate parcel or personal property located in Act 145, the Municipal Revenue Collection Office, CRIM Puerto Rico. by its Spanish acronym, issued Administrative Determina-

A-44 tion 2013-06, providing that the tax amnesty will be in effect 16. Independent body to determine unresolved appeals? for one hundred (100) days starting on December 18, 2013 Local tax board of review within 30 days of the local office and ending on March 27, 2014. The tax amnesty will not be of tax assessment’s decision. An appeal is then made to a available to real property tax debts for fiscal tax year 2013- Superior Court of Rhode Island. 2014 and subsequent years or for personal property tax debts 17. Property tax revenue vs. other revenue? for year 2013 and subsequent tax years. Act 145 also provides Rhode Island collected approximately $2.19 billion in state payment plan options with reduced interest rates. and local property taxes in 2010, representing 45.59% of the $4.81 billion in state and local taxes collected. Rhode Island At the state level, property taxes represented less than 1% of 1. Title of Property Tax System? Property Tax. total taxes collected. 2. Type of property taxed along with brief description? Property taxes accounted for approximately 97.73% of taxes Locally assessed – Most real and personal property collected at the local government level. Centrally assessed – The Department of Revenue assesses tangible 18. Any significant recent changes and important issues? property of telecommunication, cable, and express companies. Homestead – A Rhode Island city or town is authorized to 3. Person tax legally imposed on? Owner. extend, by ordinance, a homestead property tax exemption 4. Unit of assessment? Separate Parcel. to any owner-occupied premises in the city or town. Ch. 397, (H.B. 5918), Laws 2011 5. Tax rate(s) set by? Payment – If a taxpayer fails to pay the first installment or The tax rate is generally set by the town or city.R.I. Gen. any succeeding installment by the last date of the respective Laws § 44-5-1. installment period, a Rhode Island municipality has the au- 6. Current tax rate? thority to require immediate payment of local taxes, includ- Varies amongst taxing jurisdiction and amongst property ing property tax, on only that late installment and to impose types (residential real estate, commercial real estate, per- an interest charge only on that late installment. Ch. 334 (S.B. sonal property, and motor vehicles) http://www.muni-info. 592) and Ch. 394 (H.B. 946), Laws 2011 state.ri.us/documents/finances/property%20tax%20info/ TaxRatesFY2011.pdf. South Carolina 7. Frequency of adjustment of tax rate(s)? 1. Title of Property Tax System? Property Tax. Annually. R.I. Gen. Laws § 44-5-1 2. Type of property taxed along with brief description? 8. Tax collected by? Local tax collector. Locally assessed – Commercial, agricultural, and residential 9. Assessor responsible for assessments? property. Local assessors are responsible except for the centrally as- Centrally assessed – The Department of Revenue values the sessed properties listed above in which case the Department property of all manufacturers, utilities, mining companies, of Revenue is responsible. certain transportation companies (railroads, private carlines 10. Basis of valuation? and Page 19 airlines) used in the business of the taxpayer, the Fair Market Value. R.I. Gen. Laws § 44-5-12. personal property of merchants, and the motor vehicles of 11. Frequency of general revaluations? motor carriers. Revaluations occur every 9 years with property updates every 3. Person tax legally imposed on? Owner. 3 years. 4. Unit of assessment? Separate Parcel. 12. Date of last general revaluation? 5. Tax rate(s) set by? Varies amongst counties The tax rate is set by the aggregate of all levies for county, 13. Valuation date used for current assessment period? township, school and special district taxes. The tax is deter- st December 31 . R.I. Gen. Laws § 44-5-1. mined by applying the millage rate to the assessed value of the 14. Main exemptions/reliefs? property. http://www.sctax.org/NR/rdonlyres/6FDEC068- Religious and charitable properties are fully exempted 4A31-4BC2-B89B-60A63836F0E7/0/SCPropertyTax- Exemptions for veterans and homesteads vary by locality, but Book2012Edition.pdf (p.2) are typically in the 15% to 50% range. 6. Current tax rate? 15. Initial appeal process? Varies amongst taxing jurisdiction with rates differing among Initial appeals are filed with the local office of tax assessment county, city, and school districts http://www.sccounties.org/ within 90 days from the first date payment is due. Data/Sites/1/media/publications/propertytax2011.pdf

A-45 7. Frequency of adjustment of tax rate(s)? Property taxes accounted for approximately 80.50% of taxes Annually. http://www.sctax.org/NR/rdonlyres/6FDEC068- collected at the local government level. 4A31-4BC2-B89B-60A63836F0E7/0/SCPropertyTax- 18. Any significant recent changes and important issues? Book2012Edition.pdf (p.2) 8. Tax collected by? South Dakota County Treasurers 1. Title of Property Tax System? Property Tax. 9. Assessor responsible for assessments? 2. Type of property taxed along with brief description? Generally, county assessors are responsible for assessments. Locally assessed – Real property For real and personal property assessed by the Department Centrally assessed – Personal property (pipelines, railroads, of Revenue, the county auditor computes the tax after the operating property of light and power companies, and prop- Department certifies the assessment. The Department of erty of telephone companies used in providing telecom ser- Revenue both assesses and collects taxes for airlines, private vices.) carlines, and motor carriers. State Dept of Revune assess business personal property for 3. Person tax legally imposed on? Owner. most companies (www.scbos.sc.gov). 4. Unit of assessment? Separate Parcel. 10. Basis of valuation? 5. Tax rate(s) set by? Fair Market Value. http://www.sctax.org/Tax+Information/ Locally assessed property – Set by the board of county com- property/prop.html. missioners. S.D. Codified Laws § 10-12-8. 11. Frequency of general revaluations? Centrally assessed property – Set by the Department of Rev- County revaluations occur every 5 years. enue and Regulation. S.D. Codified Laws § 10-12-1. 12. Date of last general revaluation? 6. Current tax rate? Varies amongst counties Varies amongst each locality 13. Valuation date used for current assessment period? 7. Frequency of adjustment of tax rate(s)? Annually The valuation date for real property is December 31st in a 8. Tax collected by? County treasurers. year of countywide reassessment or any other year in which fair market value must be determined. S.C. Code Ann. § 12- 9. Assessor responsible for assessments? District assessors. 37-900. 10. Basis of valuation? 14. Main exemptions/reliefs? For agricultural land, that value is based on productivity Religious and charitable properties are fully exempted value. For all other property, value equals the amount for $50,000 of the fair market value of the primary residence is which it would sell on the open market. http://www.state. exempt for seniors, the blind, or the disabled. sd.us/drr2/propspectax/property/Your%20Property%20 Full exemptions are available for those disabled as a result of Taxes2.pdf (p.4.) military, law enforcement, or fire fighting services. 11. Frequency of general revaluations? Annual. All primary residences are exempt from property taxes im- 12. Date of last general revaluation? 2012. posed for school operating purposes. 13. Valuation date used for current assessment period? 15. Initial appeal process? November 1st for locally assessed properties and January 1st Locally assessed property is initially appealed to the local as- for centrally assessed properties. S.D. Codified Laws §§ 10- sessor. S.C. Code Ann. § 44-5-26. Centrally assessed property 6-2, 10-28-7. is initially appealed to the Department of Revenue. 14. Main exemptions/reliefs? 16. Independent body to determine unresolved appeals? Religious and charitable properties are fully exempted Unresolved appeals from local assessors are directed to the Owner occupied status that applies to primary residences. - County Board of Assessment Appeals for further review. Un- [In 2010, the status reduced property taxes by approximately resolved appeals from the Department of Revenue require a $500 for every $100,000 of taxable value. contested case hearing before the Administrative Law Court. Paraplegic veteran program that exempts all property tax.] 17. Property tax revenue vs. other revenue? Paraplegic exemption - between 25% and 100% of their South Carolina collected approximately $4.72 billion in state property taxes based on income (limits are $8,000 a year for and local property taxes in 2010, representing 35.84% of the singles and $12,000 for multi person households) $13.16 billion in state and local taxes collected. Homestead - available for taxpayers over 70. [Property taxes At the state level, property taxes represented less than 1% of may be deferred until the property is transferred, but interest total taxes collected. accrues at 4%.]

A-46 A refund program exists for the elderly and disabled. The 10. Basis of valuation? refunds are between 35% and 11% for single member house- Market value. The value of all property shall be ascertained holds with income between $0 and $10,250 and between from the evidences of its sound, intrinsic and immediate 55% and 19% for multi member households with income value, for purposes of sale between a willing seller and a will- between $0 and $13,250. ing buyer without consideration of speculative values. Tenn. Other exemptions are listed at (http://www.state.sd.us/drr2/ Code Ann. § 67-5-601. propspectax/tax%20program%20brochure%201012%20up- 11. Frequency of general revaluations? dated.pdf) At least once every four to six years depending on the juris- 15. Initial appeal process? diction The appeals process begins with an appeal to the local board 12. Date of last general revaluation? of equalization or the consolidated board of equalization (if Varies amongst jurisdictions the jurisdiction has a combined local and county board). 13. Valuation date used for current assessment period? 16. Independent body to determine unresolved appeals? January 1st. Tenn. Code Ann. § 67-5-504. Unresolved appeals are heard by the Office of Hearing Ex- 14. Main exemptions/reliefs? aminers, then to the circuit court. Religious and charitable properties are fully exempted. - 17. Property tax revenue vs. other revenue? [However a one time application is typically required by May South Dakota collected approximately $0.93 billion in state 20th for any non governmental properties] and local property taxes in 2010, representing 35.88% of the Farm and residential tangible personal property are not as- $2.58 billion in state and local taxes collected. sessable. At the state level, property taxes represented 0% of total taxes There is no homestead exemption, but the elderly and dis- collected. abled can file for relief. Property taxes accounted for approximately 73.42% of taxes Relief can be provided for disabled veterans or their qualify- collected at the local government level. ing spouse. 18. Any significant recent changes and important issues? 15. Initial appeal process? Assessments are initially appealed to the county board of Tennessee equalization 1. Title of Property Tax System? Property Assessment. 16. Independent body to determine unresolved appeals? Unresolved appeals are then heard by the State Board of 2. Type of property taxed along with brief description? Equalization. Locally assessed: Real and personal property, as well as statu- torily listed intangible property (such as intangibles owned 17. Property tax revenue vs. other revenue? by investment companies) Tennessee collected approximately $5.03 billion in state and local property taxes in 2010, representing 27.58% of the Centrally assessed: Properties owned by public utility com- $18.24 billion in state and local taxes collected. panies, railroads, telecom, transportation, etc. Tenn. Code At the state level, property taxes represented 0% of total taxes Ann. § 67-5-1301. collected. 3. Person tax legally imposed on? Owner. Property taxes accounted for approximately 65.08% of taxes 4. Unit of assessment? Separate Parcel. collected at the local government level. 5. Tax rate(s) set by? 18. Any significant recent changes and important issues? County. Tenn. Code Ann. § 67-1-601. Auditors – Tennessee jurisdictions are using 3rd party auditors 6. Current tax rate? for their audits. These auditors are fairly aggressive with their Varies among localities as listed at http://www.comptroller. assessments. tn.gov/pa/pdf/2012TaxAggregateReport.pdf (pp. 59-68). The highest combined rate is 7.13% and the lowest rate is Texas 1.63%. 1. Title of Property Tax System? Property Tax. 7. Frequency of adjustment of tax rate(s)? Annually. Tenn. Code Ann. § 67-1-601 2. Type of property taxed along with brief description? Real and personal property are both assessed at the local 8. Tax collected by? County trustees. level. 9. Assessor responsible for assessments? 3. Person tax legally imposed on? Owner. County assessors assess locally assessed property. The Comp- troller of the Treasury assesses centrally assessed property. 4. Unit of assessment? Separate Parcel.

A-47 5. Tax rate(s) set by? 17. Property tax revenue vs. other revenue? Each tax rate is set by the local taxing unit. Tex. Tax Code Texas collected approximately $39.09 billion in state and lo- Ann. § 26.04. cal property taxes in 2010, representing 45.19% of the $86.50 6. Current tax rate? billion in state and local taxes collected. Varies amongst each locality as listed in http://www.window. At the state level, property taxes represented 0% of total taxes state.tx.us/taxinfo/proptax/taxrates/. The highest combined collected. rate is 1.67%, the lowest combined rate is 0%, and the aver- Property taxes accounted for approximately 82.99% of taxes age is 0.89%. collected at the local government level. 7. Frequency of adjustment of tax rate(s)? 18. Any significant recent changes and important issues? Annually. Tex. Tax Code § 26.04. A 40-page document entitled “Texas Property Tax Law Changes 2011” is provided on the Texas Comptroller of 8. Tax collected by? Local Tax Collector. Public Accounts website at http://www.window.state.tx.us/ 9. Assessor responsible for assessments? County appraisal taxinfo/proptax/96-669_2011.pdf. district. 10. Basis of valuation? Typically, valuation is based on market value. However, the Utah Texas Constitution provides for the use of “productivity val- 1. Title of Property Tax System? Property Tax. ues” for agricultural and timberland. [Meaning the land is 2. Type of property taxed along with brief description? taxed based on the value of what it produces, such as crops and Locally assessed – Most real and tangible personal property livestock, rather than its sale value]. Centrally assessed – All mines, utilities and railroad properties 11. Frequency of general revaluations? At least once every three years 3. Person tax legally imposed on? The county assessor shall assess the property to the owner, 12. Date of last general revaluation? claimant of record, or occupant in possession or control at Varies amongst jurisdictions 12 o’clock midnight of January 1st in the tax year, unless a 13. Valuation date used for current assessment period? subsequent conveyance of ownership of the real property was st st January 1 , although inventory has an optional September 1 recorded in the office of the county recorder more than 14 valuation date. Tex. Tax Code § 23.01. calendar days before the date of mailing of the tax notice. 14. Main exemptions/reliefs? 4. Unit of assessment? Religious and charitable properties are fully exempted. Separate Parcel. Homesteads apply to taxpayer’s personal residences so long as they owned and lived on the property as of January 1st as 5. Tax rate(s) set by? of the tax year. Homestead exemptions include $3,000 for The tax rate is a combination of state, county, and city/town county taxes and $15,000 for school taxes. rates. Utah Code Ann. §§ 59-2-901, 59-2-906.1, 59-2-909. If a taxpayer is over 65 years of age, then they do not have to 6. Current tax rate? fulfil the January st1 ownership and residence requirement. Varies amongst each locality as listed at http://propertytax. Taxpayers 65 years of age or over and disabled taxpayers may utah.gov/library/pdf/taxrate_pdfs/budgetratesbyentity2012. also get an additional $10,000 for school tax purposes. pdf. Taxpayers may not receive $10,000 for being both 65 years 7. Frequency of adjustment of tax rate(s)? old and disabled. Annually. Utah Code Ann. §§ 59-2-901, 59-2-906.1, 59-2-909. Disabled veterans also receive relief depending on their dis- ability rating. 8. Tax collected by? More exemption information is available in a document County Treasurers. entitled “2013 Texas Property Tax Exemptions” available 9. Assessor responsible for assessments? at http://www.window.state.tx.us/propertytax/exemptions/ County assessors are responsible for local assessments. Fol- owner-exemptions/96-1740.pdf. lowing the County assessor’s assessment, the county board of 15. Initial appeal process? equalization shall adjust and equalize the valuation and as- A taxpayer may appeal to the Appraisal Review Board. sessment of the real and personal property within the county, subject to regulation and control by the commission as pre- 16. Independent body to determine unresolved appeals? scribed by law. Taxpayers may appeal Appraisal Review Board decisions to the state district court in the county in which the property The State Tax Commission assesses all centrally assessed is located. property.

A-48 10. Basis of valuation? Vermont Generally fair market value, except for construction work in 1. Title of Property Tax System? Property Valuation and progress which is valued at the full cash value projected upon Review completion. Utah Code Ann. § 59-2-201. 2. Type of property taxed along with brief description? 11. Frequency of general revaluations? Locally assessed – Most real and tangible personal property. Annually, with a physical inspection every five years Centrally assessed – Railroads and other properties as required 12. Date of last general revaluation? by law (stated in Vt. Stat. Ann. tit. 32, § 3411(11)). Physical inspections vary amongst each jurisdiction 3. Person tax legally imposed on? Owner. 13. Valuation date used for current assessment period? 4. Unit of assessment? Separate Parcel. January 1st. Utah Code Ann. § 59-2-201. 5. Tax rate(s) set by? 14. Main exemptions/reliefs? Legislature of each municipality for most taxes, however the Government and charitable properties are fully exempted. state sets the state-wide education tax rate. Vt. Stat. Ann. tit. Primary residences are allowed relief of 45% of fair market 32, § 2664. value in assessment. There is also a “circuit breaker” credit for low income elderly 6. Current tax rate? people (65 years old). Varies amongst each locality as listed in http://www.state. Abatements may also be granted for those taxpayers facing vt.us/tax/pvrannualreports.shtml (Taxes and tax rates by extreme conditions or hardships. county). There are different rates for homestead school dis- tricts, non resident school districts, and municipal taxes. For 15. Initial appeal process? homesteads, the highest rate in 2012 was 1.9515%, the lowest Locally assessed property appeals go to the appropriate was 0%, and the average was 1.0537%. For non resident school county board of equalization. districts, the highest rate was 1.8636%, the lowest was 0%, and Centrally assessed property appeals go to the Utah State Tax the average was 1.1171%. For municipal taxes, the highest rate Commission. was 1.5961%, the lowest was 0%, and the average was .3897%. 16. Independent body to determine unresolved appeals? 7. Frequency of adjustment of tax rate(s)? Appeals from locally assessed property decisions go to the The Grand List is compiled annually and aids in the adjust- district court in the affected taxpayer’s county. ment of tax rates. Appeals from centrally assessed property decisions go to 8. Tax collected by? Third Judicial District Court in and for Salt Lake County. Tax is collected by the municipal tax collector unless the 17. Property tax revenue vs. other revenue? town votes to have the treasurer collect. Utah collected approximately $2.30 billion in state and local 9. Assessor responsible for assessments? property taxes in 2010, representing 27.64% of the $8.32 bil- Assessments are typically made by local “listers” who qualify lion in state and local taxes collected. through certain criteria as listed in the “lister’s handbook” on At the state level, property taxes represented 0% of total taxes the department of tax website. collected. 10. Basis of valuation? Property taxes accounted for approximately 71.24% of taxes Fair market value for most properties although a current use collected at the local government level. exception applies for agricultural land properties of 25 acres 18. Any significant recent changes and important issues? or more. Vt. Stat. Ann. tit. 32, § 4041. SB 58 Property Tax Valuation Amendments, [Effective January 11. Frequency of general revaluations? Annual. 1, 2013] - Addressing the assessment of fair market value of prop- erty particularly after a reduction in value within the past three 12. Date of last general revaluation? 2012. years, it requires reporting of property tax valuation reductions on 13. Valuation date used for current assessment period? appeal and requires the assessor to consider: (1) any additional April 1st. Vt. Stat. Ann. tit. 32, § 3651. information previously unknown or unaccounted for by the asses- 14. Main exemptions/reliefs? sor that is made known on appeal; (2) whether the reasons for the Government and charitable property is fully exempted. valuation reduction continue to influence the fair market value of Exemptions or deferrals may be enacted by the localities for the property. The assessor is not prohibited from including any permanently disabled and elderly taxpayers. other factors affecting the fair market value of the property. Act 60 and Act 68 have been interpreted by the legislature More information on 2012 enacted property tax legislation to replace the property tax with an income based tax for Ver- is available at http://www.propertytax.utah.gov/library/pdf/ mont homeowners with income less than $90,000. Some news/2012summaryoflegislation.pdf taxpayers with up to $97,000 in income also qualify for the

A-49 “income sensitivity” provision, which limits the amount of 5. Tax rate(s) set by? tax paid toward the state wide portion of their tax bill on The of fixing county and district levies on property seg- their primary residence to a pre determined percentage of regated for local taxation is on the board of supervisors or their prior year’s income. Primary homes with a value over governing body of each county. Va. Code Ann. § 58.1-3001. $500,000 are no longer eligible for the relief. 6. Current tax rate? There is also a reduction of $15,000 on a primary home and Varies amongst each locality as listed in http://www. up to two acres for incomes under $47,000. nrvalliance.org/documents/VirginiaGuidetoLocalTaxeson Act 60 also continued a system that provides a cap of 5% of Business2012-2013.pdf (pp.1-4). The highest rate is 1.65% household income for payment of combined state and local and the lowest is .09%. property taxes on a home and two acres when the household income is between $25,000 and $47,000. This cap is reduced 7. Frequency of adjustment of tax rate(s)? for income under $25,000 and falls as low as 2% for income Typically annually, however localities may change the rate of under $10,000. levy during the fiscal year. Va. Code Ann. § 58.1-3001. Further exemptions are located at http://www.state.vt.us/ 8. Tax collected by? tax/pdf.word.excel/pvr/rule82-1.pdf Tax is collected by the county or city treasurer. 15. Initial appeal process? 9. Assessor responsible for assessments? The taxpayer must first appeal in writing to the Board of Assessments are made by either a city revenue commissioner Listers for that municipality. or a county revenue commissioner. 16. Independent body to determine unresolved appeals? 10. Basis of valuation? An appeal from the Board of Lister’s decision next goes to Fair market value. Va. Const. § 2. the Board of Civil Authority must be in written form within 11. Frequency of general revaluations? 14 days of the decision’s mailing date. Every two years in cities and every four years in counties. 17. Property tax revenue vs. other revenue? Counties with a total population of 50,000 or less may elect Vermont collected approximately $1.35 billion in state and by a majority vote of its board of supervisors to conduct its local property taxes in 2010, representing 45.85% of the general reassessments at five or six-year intervals. Most large $2.95 billion in state and local taxes collected. cities and counties assess annually (e.g. Northern Virginia: At the state level, property taxes represented approximately Arlington, Alexandria, Fairfax, Loudon, and Richmond 37.50% of total taxes collected. Metro: City of Richmond, Henrico). Property taxes accounted for approximately 93.20% of taxes 12. Date of last general revaluation? collected at the local government level. Varies by county 18. Any significant recent changes and important issues? 13. Valuation date used for current assessment period? January 1st. Va. Code Ann. § 58.1-3281. Virginia 14. Main exemptions/reliefs? Government and charitable property is fully exempted. 1. Title of Property Tax System? Exemptions or deferrals may be enacted by the localities for The property tax system is broken down amongst each permanently disabled and elderly taxpayers. county to include both real estate tax and personal property tax sections. 15. Initial appeal process? The taxpayer must first contest the assessment to the com- 2. Type of property taxed along with brief description? missioner of revenue or other responsible assessing official. Locally assessed – Most real and tangible personal property. 16. Independent body to determine unresolved appeals? Centrally assessed – Real and tangible personal property asso- An appeal from the commissioner of revenue or other re- ciated with public service corporations and railroads, as well sponsible assessing official goes to the tax commissioner, and as utilities, telecom, and motor vehicle carriers. an appeal from the tax commissioner must go to the appro- 3. Person tax legally imposed on? priate Circuit Court. Property owned by a person in his or her own right must be 17. Property tax revenue vs. other revenue? taxed to him or her. If property is owned by a minor, it shall Virginia collected approximately $11.24 billion in state and be listed by and taxed to the guardian or trustee. If there is local property taxes in 2010, representing 36.06% of the no guardian or trustee, it is listed by and taxed to the person $31.18 billion in state and local taxes collected. in possession of the property. At the state level, property taxes represented less than 1% of 4. Unit of assessment? Separate Parcel. total taxes collected.

A-50 Property taxes accounted for approximately 75.92% of taxes 15. Initial appeal process? collected at the local government level. A taxpayer may appeal to the county board of equalization 18. Any significant recent changes and important issues? within 30 days (or 60 days if set by the county) of the mailing Local 10% interest rates are very high and not tied to federal of the assessment. and state interest rates. 16. Independent body to determine unresolved appeals? An appeal from the county board of equalization is made to Washington the Board of Tax Appeals. 1. Title of Property Tax System? Property Tax. 17. Property tax revenue vs. other revenue? 2. Type of property taxed along with brief description? Washington collected approximately $8.43 billion in state Real and tangible personal property. Most personal property and local property taxes in 2010, representing 31.47% of the is exempt unless it is used in a business. $26.77 billion in state and local taxes collected. At the state level, property taxes represented approximately 3. Person tax legally imposed on? 11.31% of total taxes collected. The tax is legally imposed on the owner. Property taxes accounted for approximately 61.90% of taxes 4. Unit of assessment? Separate Parcel. collected at the local government level. 5. Tax rate(s) set by? 18. Any significant recent changes and important issues? Each county determines the tax rate needed to reach the The burden of proof for property tax appeals is the unusually amount of taxes levied for county purposes. high clear, cogent and convincing standard rather than the 6. Current tax rate? traditional preponderance of the evidence test. Legislative Counties vary in tax rate, but the state-wide average for 2012 attempts to change this have failed the last several years. was $11.78 per $1,000 http://dor.wa.gov/docs/reports/2012/ Property_Tax_Statistics_2012/2012%20 levies%20due.pdf West Virginia (summary of major WA state tax rates). The county aver- 1. Title of Property Tax System? Property Tax. age local levy rates are listed at http://dor.wa.gov/docs/re- ports/2012/Property_Tax_statistics_2012/Table_28.pdf. 2. Type of property taxed along with brief description? The highest county average levy rate was $13.87 per $1,000, Real and tangible personal property except that all tangible and the lowest was $5.60%. personal property employed exclusively in agriculture, in- cluding horticulture and grazing is not taxable. 7. Frequency of adjustment of tax rate(s)? Annual. All property except public utility property (centrally as- 8. Tax collected by? sessed) is locally assessed. While this is a true statement, Property tax is paid to the county treasurer. industrial real and personal property and natural resource 9. Assessor responsible for assessments? real property is appraised by the Tax Commissioner and County assessors are responsible for assessments, but valua- results furnished to the assessor of the county in which the tions of centrally assessed properties (e.g., utilities) are per- property is located. formed by the state and valuations of all other property are 3. Person tax legally imposed on? performed by county assessors. The tax is legally imposed on the owner, except on certain 10. Basis of valuation? stock or capital of a company. Since intangible personal Fair market value. Wash. Rev. Code § 84.40.030. property is now exempt from property tax, corporations pay 11. Frequency of general revaluations? tax on the assessed value of their real and tangible personal Real property revaluations must occur at least once every property. four years with physical inspections occurring once every six 4. Unit of assessment? Separate Parcel. years. Starting by 2014, each piece of property must be reval- 5. Tax rate(s) set by? ued annually. Each municipal district sets their rates subject to the limita- 12. Date of last general revaluation? tions listed in the next question. The levying bodies are the Varies by county State, county boards of education, county commissions and 13. Valuation date used for current assessment period? municipalities. st st January 1 for most property. July 1 of the assessment year 6. Current tax rate? for new construction. Wash. Rev. Code § 36.21.080 All rates below are valued at Cents per $100 valuation. 14. Main exemptions/reliefs? The current rates for state tax are set at .25 for Class 1; .50 Certain non-profits, governments, low income homeowners, for Class 2; and 1 for Class 3 and Class 4 as set by the WV household goods, intangibles, and business inventories State Code.

A-51 The current maximum rates for county tax are set at 14.3 for 15. Initial appeal process? class 1; 28.6 for Class 2; and 57.2 for Class 3 and Class 4. The initial appeal is made to the local assessor. The listing of various rates for localities and property classes An informal review process is provided for property ap- is listed at http://www.wvsao.gov/localgovernment/files/ praised by the Tax Commissioner. reports/Rate_Book_2012_VALUES_revised_6_25_2012. For property appraised and assessed by county assessor there pdf. Note: In addition to the above maximum regular rates is also an informal review process in January of the property of levy, they levying bodies may also impose a levy for voter tax year. approved general obligation bonds and voter approved excess 16. Independent body to determine unresolved appeals? levies. For locally assessed properties, the taxpayer may appeal to 7. Frequency of adjustment of tax rate(s)? Annually. the county commission. The county commission of each county meets as a board of equalization to hear appeals no 8. Tax collected by? later than February 1. The board must adjourn sine die on or Property tax is collected by the County Sheriff except for before February 28. Taxpayers may also file a written protest property taxes on public utility property which is collected with the board prior to February 20 and elect to have their by the State Auditor and distributed to local levying bodies.. protests heard in October by the county commission sitting 9. Assessor responsible for assessments? as a board of assessment appeals. Appeals are to the circuit Except for utility property, which is assessed by the state court for the county. Board of Public Works, the county assessor determines the Protests of tentative assessed values of public utility are heard value of real and personal property in the county using pro- by the Board of Public Works. Appeals are to the circuit cedures and methodologies established by the tax commis- court. sioner. Note: The county commission sitting as a board of equal- Note: the Tax Commissioner determines the appraised value ization and review or as an appraisal review board may not of industrial real and personal property and natural resource consider questions of classification or taxability. The appeal real property and furnishes the appraisals to the county as- process for this is established in W. Va. Code § 11-3-24a. sessors who determine the assessed value of the property. The Appeals from rulings of the Tax Commissioner are to the Tax Commissioner also prepares tentative assessed values of circuit as provided in W. Va. Code § 11-3-25. The appeal is public utility property for the Board of Public Works. heard de novo. 10. Basis of valuation? 17. Property tax revenue vs. other revenue? Generally fair market value except for except farmland, West Virginia collected approximately $1.38 billion in state which is valued according to its fair and reasonable value for and local property taxes in 2010, representing 21.31% of the farming purposes, and managed timberland, which is valued $6.47 billion in state and local taxes collected. based on its use and productive potential. W. VA. Code § 11- At the state level, property taxes represented less than 1% of 1C-10. total taxes collected. Property taxes accounted for approximately 80.82% of taxes 11. Frequency of general revaluations? collected at the local government level. Annually, although state law only requires physical inspec- tion every three years. 18. Any significant recent changes and important issues? Beginning with the 2011 property tax year, the Legislature 12. Date of last general revaluation? 2012. established the informal review process discussed earlier and 13. Valuation date used for current assessment period? established the board of assessment appeals. However, to st July 1 of current year. Official Material: West Virginia Taxpayer maintain the appeal, taxpayer needs to pay taxes assessed on Services Division Publications No. TSD-387, 08/01/2002. The the property as they become due. property tax year is the calendar year. The assessment year Discount – Taxpayers receive a 2.5% discount if they fully pay begins six months before the property tax year. on or before Sep. 1. 14. Main exemptions/reliefs? Wisconsin Property owned by the federal government, the state, and by local governments is generally exempt. Property owned 1. Title of Property Tax System? Property Tax. and used by churches, universities, educational and charitable 2. Type of property taxed along with brief description? facilities are also generally exempt. Real and Personal Property. Homestead exemptions apply for low income seniors and the 3. Person tax legally imposed on? disabled ($20,000 of assessed value). There is an additional Generally, personal property is assessed to the owner. How- exemption on the next $10,000 of assessed value, which is ever, personal property may also be assessed to an agent of refunded by the State through the personal income tax and the owner who is in charge or who has possession of the provides additional tax relief of $125 or less. property. If personal property is assessed to an agent, the as- A-52 sessment is entered on the assessment roll separately from 15. Initial appeal process? the agent’s own personal property. Locally assessed property – In all first class cities and some sec- 4. Unit of assessment? Separate Parcel. ond class cities, the party must object 15 days from the date of the notice of assessment to their Board of Assessors. 5. Tax rate(s) set by? All others must give written or oral notice at least 48 hours The county clerk calculates the rate after the governing body prior to the Board of Review’s first meeting, and file a no- of the town, village, or city determines how much money tice of objection before or within the first two hours of the must be raised from the property tax. board’s first scheduled meeting. The Board of Review meets 6. Current tax rate? for at least 30 days starting on the second Monday in May. Varies amongst each locality as listed in http://www. 16. Independent body to determine unresolved appeals? revenue.wi.gov/pubs/slf/tvc11.pdf. In 2011, the average rate An appeal after the Board of Review goes to the Circuit for towns, villages, and cities was .02133. Court. The Circuit Court will not allow new evidence to be 7. Frequency of adjustment of tax rate(s)? Annually introduced. A taxpayer may also appeal to the Department of Revenue within 20 days of receipt of the Board of Review’s 8. Tax collected by? decision or within 30 days of the mailing of the decision. In Wisconsin the town, village, or city treasurer collects property taxes not only for its own purposes, but also for the 17. Property tax revenue vs. other revenue? school, the county and the state. Wisconsin collected approximately $9.64 billion in state and local property taxes in 2010, representing 39.54% of the 9. Assessor responsible for assessments? $24.39 billion in state and local taxes collected. The assessor of each taxation district determines the assessed At the state level, property taxes represented only about 1% value of all taxable property, with the exception of manufac- of total taxes collected. turing property. The DOR makes the annual assessment of Property taxes accounted for approximately 94.80% of taxes all manufacturing property in the state. collected at the local government level. 10. Basis of valuation? 18. Any significant recent changes and important issues? Generally “full cash value” (fair market value) valued at The Wisconsin Department of Revenue is working with its highest use. http://www.revenue.wi.gov/pubs/slf/pb060. local governments and assessors to implement several im- pdf. provements to the assessment process by 2013 by requiring 11. Frequency of general revaluations? assessors to follow the Uniform Standards of Professional State-assessed property – Manufacturing reporting forms filed Appraisal Practice (USPAP) and requiring municipality as- by manufacturers and the related accounts are reviewed and sessment data to be stored and maintained electronically. adjusted annually. A field review is statutorily required at S.B. 414 provides the following: 1) 30-day notice period in least once in every five years. revaluation years; 2) allows jurisdictions to allow for written or Locally-assessed property – The frequencies vary widely for lo- telephonic testimony rather than a physical appearance before cally assessed properties, although a field review is required the board of review; and 3) allows for the taxpayer or jurisdic- at least once in every five years. tion or board to move to decline to hear the taxpayer’s appeal 12. Date of last general revaluation? at the board of review (allowing taxpayers to file a de novo ac- Varies by assessing jurisdiction tion in circuit court 60 days after notification, as compared to over a year taxpayers had to wait before the bill passed). 13. Valuation date used for current assessment period? st January 1 of current year. http://www.revenue.wi.gov/pubs/ Wyoming slf/pb060.pdf. 1. Title of Property Tax System? Property Tax. 14. Main exemptions/reliefs? 2. Type of property taxed along with brief description? Property owned by the federal government, the state, and by Real and personal property – General commercial, industrial, local governments is generally exempt. residential and agricultural property is locally assessed. Min- Property owned and used by churches, universities, educa- ing, pipelines, telecom, utilities, railroads, leased property tional and charitable facilities, non-profit hospitals, and non- (consisting of warehouse, storage facilities and office struc- profit housing are also generally exempt. tures), cable and satellite television, are centrally appraised by Certain types of personal property, such as household per- the Wyoming Department of Revenue. sonal property, manufacturing machinery and equipment, inventories, computers, and waste treatment equipment are 3. Person tax legally imposed on? also exempt. Property tax is generally imposed on the Owner. If property • Intangible property (examples include bank accounts is leased by centrally appraised company then the property and corporate securities) are also exempt. is assessed to the lessee and it shall not be assessed to the A-53 property owner. Leased property is subject to the same level 14. Main exemptions/reliefs? of assessment as for all owned property. Government property used primarily for a governmental 4. Unit of assessment? Separate Parcel. purpose. Personal property held for personal use. 5. Tax rate(s) set by? Properties used for non-commercial purposes, including Property tax rates are annually set by the state, counties, cit- property used for hospitals, real property used exclusively ies, towns, school districts and special districts. for religious worship, church schools and church parsonages, 6. Current tax rate? property used by benevolent societies, and non-profit schools Varies amongst each locality as listed on tables available at: and colleges. Wyo. Stat. Ann. § 39-11-105(a). http://revenue.wyo.gov/property-tax-division/property-tax- Wyoming law provides a home owner’s tax credit (Wyo. Stat. Ann. tables. § 39-13-101(d)(i)) ; veterans who have been a Wyoming resident In 2013, the highest average millage rate was 74.280, the for three years can claim a $3,000 assessed value exemption, when lowest millage rate was 59.625, and the average was 67.917 funded by the legislature; there is a property program with qualifying income/asset levels; deferral program available for 7. Frequency of adjustment of tax rate(s)? Annually. elderly, disabled, and low income taxpayers. 8. Tax collected by? County treasurer. 15. Initial appeal process? 9. Assessor responsible for assessments? Locally-assessed property – Appealed to the assessor’s office Generally by county assessor, however certain property types and County BOE within 30 days of the mailing of the no- are appraised by the Department of Revenue. The property tice of assessment. types appraised by the Department include the gross product State-assessed property – Appealed to the State BOE (and of mines and mining claims, as well as the property of pipe- served upon the Department of Revenue) within 30 days of line companies, electric utilities, railroad and rail car com- the mailing of the notice of assessment. panies, telecommunications companies, property of other 16. Independent body to determine unresolved appeals? public utilities, and property of cable and satellite television Locally-assessed property - If the county board finds for the companies. assessor, the taxpayer may appeal to the State BOE within 10. Basis of valuation? 30 days of the decision. The State BOE is comprised of three Generally fair market value. Agricultural land is valued based Governor appointed members. Appeals may progress to the on its capability to produce. Additionally, mineral property is district court and ultimately the Supreme Court. valued at is production value. Wyo. Stat. Ann. § 39-13-103(b). State-assessed property – An appeal from a State BOE deci- 11. Frequency of general revaluations? sion is made to the district court for the county in which the Property values must be updated annually. Detailed review administrative action was taken, or where the property is or of residential property characteristics must be made at least was located, or where the property was produced in the case once every six years. The State BOE confirms that county of mineral production. assessments are made in a uniform manner based on estab- 17. Property tax revenue vs. other revenue? lished standards. Wyoming’s total assessed valuation of property in 2013 was 12. Date of last general revaluation? approximately $22.79 billion and Wyoming collected ap- Required to value each property annually. proximately $1.46 billion in state and local property taxes in 2013. Approximately 59.25% of the assessed value is from 13. Valuation date used for current assessment period? mineral production. Taxable property is appraised at its fair market value on Janu- ary 1st of each year. Wyo. Stat. Ann. § 39-13-103(b). 18. Any significant recent changes and important issues?

A-54 AUSTRALIA 14. Main exemptions/reliefs? Charities, Educational institutions and religious institutions Australian Capital Territory (ACT) exempt from rates and land tax 1. Title of Property Tax System? 15. Initial appeal process? 60 days from date of issue of no- The ACT operates as both a State government and the local- tice of rates and/or land tax municipal government. It has 3 types of property taxes being: 16. Independent body to determine unresolved appeals? Municipal rates: levied annually on all property owners and ACT – Administrative and Civil Appeals Tribunal is based on the property’s Unimproved Land Value 17. Property tax revenue vs. other revenue? Not known Land Tax: charged annually on residential properties that 18. Any significant recent changes and important issues? are rented (i.e. investment properties). Again is based on the property’s Unimproved Land Value Proposing to phase out over the next 20 years Stamp Duty: charged on each property transaction. Pur- chaser pays a tax as a percentage of the contracted sale price. New South Wales Duty paid as part of the settlement of sale process 1. Title of Property Tax System? 2. Type of property taxed along with brief description? Land Tax – State level Municipal rates: All property Local Government Rates – local level Land Tax: All revenue generating resi- For local government rating new land values (approx 880,000 dential properties annually) are issued by the Valuer General on average once Stamp Duty: All property transactions every 3 years. For land tax purposes land values (approx 2.46 million annu- 3. Person tax legally imposed on? ally) are issued by the Valuer General annually to the Office Municipal rates: The property owner of State Revenue Land Tax: The property owner In NSW rating and taxing valuations are administered Stamp Duty: The property purchaser through the Valuation of Land Act 1916. 4. Unit of assessment? 2. Type of property taxed along with brief description? Municipal & Land Tax: Unimproved Land Value For local government rating – part of the assessed rates are Stamp Duty: Contracted sale price levied on vacant land value 5. Tax rate(s) set by? All are set by the ACT Government For land tax purposes – land tax is assessed solely on the 6. Current tax rate? vacant land value. Rates: http://www.revenue.act.gov.au/rates/rates_ 3. Person tax legally imposed on? Owner or lessee depend- calculation ing upon ownership and lease provisions Land Tax: http://www.revenue.act.gov.au/land_tax/ 4. Unit of assessment? Owner’s parcel land_tax_rates Stamp Duty: http://www.revenue.act.gov.au/duties/land_ 5. Tax rate(s) set by? and_improvements Local government rates – Set by individual local govern- ment councils with an annual cap in rates increases im- 7. Frequency of adjustment of tax rate(s)? Annually for posed by the State Government. Administered through the Rates and Land Tax; Infrequent for Stamp Duty Local Government Act 1996 and the Valuation of Land 8. Tax collected by? All - ACT Revenue Department Act 1916. 9. Assessor responsible for assessments? Land tax – New South Wales Government. Administered Rates & Land Tax - Australian Valuation Office through the Land Tax Management Act 1956 and the Valu- ation of Land Act 1916. Stamp Duty - Contract of Sale 6. Current tax rate? 10. Basis of valuation? Rates & Land Tax - Unimproved Local government rates – Actual rate is set by individual lo- Land Value cal government councils with an annual cap in rates increases 11. Frequency of general revaluations? Rates & Land Tax imposed by the State Government. - Annually Land Tax Rate (2013) – 1.6% over a land value of $406,000. 12. Date of last general revaluation? Rates & Land Tax – 1 If land value greater than $2,482,000, then 2% over that January 2013 figure. 13. Valuation date used for current assessment period? 7. Frequency of adjustment of tax rate(s)? Reviewed annu- Rates & Land Tax – 1 January 2013 ally

A-55 8. Tax collected by? 2. Type of property taxed along with brief description? Local Government rates collected by individual local gov- Council rates are based on land value (UCV) ernment councils GST is a complicated tax for property and is levied where Land tax collected by the Office of State Revenue on behalf the vendor is registered usually on new and commercial of the NSW Government properties 9. Assessor responsible for assessments? 3. Person tax legally imposed on? The Proprietor NSW Valuer General provides all land values for rating and 4. Unit of assessment? Based on the valuation band set out taxing purposes (2.46 million currently produced annually) below on the “rate roll” 10. Basis of valuation? Current market value based on va- 5. Tax rate(s) set by? Local Govt cant land value 6. Current tax rate? .3-.5 Cents in the $UCV 11. Frequency of general revaluations? Rates are charges on the unimproved capital value of property On average individual councils receive new land values every (the land only - this does not include any improvements). 3 years for rating purposes. The unimproved value of land is assessed by the Valuer-Gen- Majority on 3 years but some remote councils on 4 years. eral every three years. Land tax valuations are provided annually. Differential Rating 12. Date of last general revaluation? 1 July 2012 – issued in The differential rating system is seen by the Council to be January/February 2013 fairer and less vulnerable to market fluctuations. 13. Valuation date used for current assessment period? 1 It also helps prevent major increases following the unim- July 2012 proved capital valuations every three years. 14. Main exemptions/reliefs? It has been based on Town Planning Zones under the Plan- Local Government rates – relief for such organizations such ning Act. There are 25 Town Planning Zones and Council as charities and not for profit organizations has grouped these into 10 categories. Land tax – exempt – principle place of residence (family The Minimum residential rate for 2012/13 is $922, an in- home) and agricultural land crease of $40 on last year. The minimum commercial rate is 15. Initial appeal process? $961, an increase of $41. The differential rates are applied to 60 days from the issue of the Notice of Valuation or issuing the assessed unimproved capital value of the land on the fol- of the land tax assessment. lowing categories. There is provision for the Valuer General to accept ‘out of The differential rates are applied to the assessed unimproved time’ objections where adequate reasons are provided for capital value of the land on the following categories. lateness. TOWN PLANNING 16. Independent body to determine unresolved appeals? ZONE (% of UCV) MINIMUM Land and Environment Court SD, RR, RL, R 0.380417% $922 17. Property tax revenue vs. other revenue? MD, MR, HR 0.380417% $970 Local Government Rates – Approx $2.6 billion collected an- nually off the land values. CV 0.371883% $922 Land Tax – Approx $2.0 billion collected annually off the CB 0.495058% $1168 land values (represents approx 10% of State taxes). PS, CN 0.342934% $961 18. Any significant recent changes and important issues? OR 0.314830% $380 The base legislation (Valuation of Land Act 1916) is to be FD, SU, CP, CL, RD, U 0.380417% $970 completed reviewed in 2013, to provide a clear, concise, sim- C, SC 0.497032% $961 ple English legislative document. TC, HT 0.523302% $961 The federal Government commissioned ‘Henry’ Report has LI 0.316623% $961 also recommended that property remain as the principle ba- sis for levying property taxes, with a recommendation for GI, DV 0.267500% $961 increased emphasis on land tax as being a principle basis for taxes. An example - Lyons Property Rates The property originally had a 2008 Unimproved Capital Northern Territory (Australia) Value (UCV) of $226,900. Following the recent revaluation 1. Title of Property Tax System? by the Australian Valuation Office, the UCV has now been Council/Local Govt Rating assessed at $325,000. This equates to a 43.2% increase in the Federal GST property UCV.

A-56 The General Rate for 2011/2012 was $988.29 (based on the Queensland UCV of $226,900), if a 4.5% increase were applied using the 1. Title of Property Tax System? original UCV, the new rate would have been $1,032.76. Apart from transfer duty, there are two forms of property tax However with the increased UCV, the new General Rate in Queensland: for this property will actually be $1,236.36. This equates to A) Council Rates: One of the main sources of revenue for an actual increase in the General Rate for this property of local authorities. Local authorities charge rates on all rate- $248.07 or 25%. able property in their area. It is calculated by a rate in the dol- Other Rates, Levies or Charges lar multiplied by the unimproved or site value of the property There may be other rates, charges or levies that apply to a owned in the local authority. particular property. These could include garbage charges or B) Land Tax: Land tax is paid to the State Government and car parking shortfall levy. is assessed on the taxable value of an owner’s total land-hold- ings in Queensland. Land tax is paid if the total taxable value 7. Frequency of adjustment of tax rate(s)? Annually exceeds the relevant threshold. An owner can apply for a land 8. Tax collected by? Local exemption on their principal place of residence or if the 9. Assessor responsible for assessments? Valuer General property is used for primary production purposes. NT 2. Type of property taxed along with brief description? 10. Basis of valuation? Unimproved capital value A) Council Rates: All rateable land under the local govern- ment legislation. Real property including freehold and lease- 11. Frequency of general revaluations? At least 3 yearly hold tenure. 12. Date of last general revaluation? 1 July 2012 B) Land Tax: Real property, freehold tenure only. 13. Valuation date used for current assessment period? 1 3. Person tax legally imposed on? July A) Council Rates: Owner 14. Main exemptions/reliefs? B) Land Tax: Owner Traditional owners, Pastoralists. 4. Unit of assessment? Charities, Religious bodies Separate valuation generally for each lot; however adjoining 15. Initial appeal process? By way of objection to the VG lots are included in the same valuation if they are owned by the same person. 16. Independent body to determine unresolved appeals? 5. Tax rate(s) set by? Valuation Board of Review if dissatisfied with VG ruling A) Council Rates: Local Government. 17. Property tax revenue vs. other revenue? Not available B) Land Tax: State Government 18. Any significant recent changes and important issues? 6. Current tax rate? Land Tax is not levied and not envisioned by present govern- A) Council Rates: Varies with each Local Authority, exam- ment ple of Brisbane City Council below:

Differential Differential General Rate Minimum Category Description (cents in the dollar) General Rate Parity Factor 1 Residential – Owner-occupied 0.3000 $484.96 1.0000 2a Commercial/Non-Residential – Group A 0.8344 $1,231.48 1.0000 2b Commercial/Non-Residential – Group B 0.7824 $56,915.92 1.0000 2c Commercial/Non-Residential – Group C 0.7824 $98,407.64 1.0000 2d Commercial/Non-Residential – Group D 0.3716 $1,231.48 1.0000 2e Commercial/Non-Residential – Group E 0.8344 $117,925.00 1.0000 2f Commercial/Non-Residential – Group F 0.8344 $58,595.00 1.0000 2g Commercial/Non-Residential – Group G 0.8344 $115,653.00 1.0000 2h Commercial/Non-Residential – Group H 0.8344 $150,350.00 1.0000 2i Commercial/Non-Residential – Group I 0.8344 $20,700.00 1.0000 2j Commercial/Non-Residential – Group J 0.8344 $85,350.00 1.0000 (Continued)

A-57 Differential Differential General Rate Minimum Category Description (cents in the dollar) General Rate Parity Factor 2k Commercial/Non-Residential – Group K 0.8344 $6,810.00 1.0000 2l Commercial/Non-Residential – Group L 0.8344 $1,231.48 1.0000 3 Rural 0.3144 $519.08 1.0000 4 Multi-Residential 0.5168 $750.36 1.0000 5a Central Business District – Group A 1.2940 $1,588.56 1.0000 5b Central Business District – Group B 1.1868 $191,485.80 1.0000 5c Central Business District – Group C 1.2300 $212,762.00 1.0000 5d Central Business District – Group D 1.2420 $265,952.48 1.0000 5e Central Business District – Group E 1.1848 $319,143.00 1.0000 5f Central Business District – Group F 1.212 $372,333.48 1.0000 5g Central Business District – Group G 1.2976 $425,524.00 1.0000 5h Central Business District – Group H 1.2032 $478,714.48 1.0000 5i Central Business District – Group I 1.2780 $531,905.00 1.0000 5j Central Business District – Group J 1.2020 $638,286.00 1.0000 5k Central Business District – Group K 1.1582 $691,476.48 1.0000 5l Central Business District – Group L 1.1568 $904,238.48 1.0000 5m Central Business District – Group M 1.5324 $1,010,619. 1.0000 5n Central Business District – Group N 1.1752 $1,063,810. 1.0000 5o Central Business District – Group O 1.3288 $1,170,191. 1.0000 5p Central Business District – Group P 1.2036 $1,489,334. 1.0000 5q Central Business District – Group Q 1.2112 $1,702,096. 1.0000 5r Central Business District – Group R 1.2000 $1,808,477. 1.0000 6 Other 0.8344 $1,231.48 1.0000 7 Residential – Non-owner Occupied or Mixed Use 0.3812 $605.72 1.0000 8a Large Regional Shopping Centre – Group A 1.0252 $106,381.00 1.0000 8b Large Regional Shopping Centre – Group B 1.0076 $132,976.24 1.0000 8c Large Regional Shopping Centre – Group C 1.3300 $138,295.28 1.0000 8d Large Regional Shopping Centre – Group D 1.0324 $170,209.60 1.0000 8e Large Regional Shopping Centre – Group E 1.0348 $191,485.80 1.0000 8f Large Regional Shopping Centre – Group F 1.0416 $239,357.24 1.0000 8g Large Regional Shopping Centre – Group G 1.4608 $292,547.72 1.0000 8h Large Regional Shopping Centre – Group H 1.0084 $319,143.00 1.0000 8i Large Regional Shopping Centre – Group I 1.0868 $398,928.72 1.0000 8j Large Regional Shopping Centre – Group J 1.1000 $425,524.00 1.0000 8k Large Regional Shopping Centre – Group K 1.1000 $553,181.20 1.0000 9a Major Regional Shopping Centre – Group A 1.4448 $904,238.48 1.0000 9b Major Regional Shopping Centre – Group B 1.1000 $1,063,810. 1.0000 9c Major Regional Shopping Centre – Group C 1.5348 $1,170,191. 1.0000 9d Major Regional Shopping Centre – Group D 1.2868 $1,329,762. 1.0000 Refer TABLE 10 CTS - Residential – Owner-occupied 0.3292 $484.96 ‘A’ (Continued)

A-58 Differential Differential General Rate Minimum Category Description (cents in the dollar) General Rate Parity Factor Refer TABLE 11a CTS - Commercial/Non-Residential – Group A 0.8316 $1,231.48 ‘A’ Refer TABLE 11b CTS - Commercial/Non-Residential – Group B 0.8316 $1,231.48 ‘A’ Refer TABLE 12 CTS - Multi-Residential 0.5504 $750.36 ‘A’ Refer TABLE 13 CTS - Central Business District 1.2648 $1,588.56 ‘A’ CTS - Residential – Non-owner Occupied or Refer TABLE 14 Mixed Use 0.4280 $605.72 ‘A’ Refer TABLE 15 CTS – Minor Lot 0.9112 $605.72 ‘A’

B) Land Tax: There are two separate scales: one for individuals (other than trustees or absentees) and one for companies, trustees and absentees:

Rates for individuals (other than absentees, companies or trusts)

Taxable value Rate of tax $0–$599,999 $0

$600,000–$999,999 $500 plus 1 cent for each $ more than $600,000

$1,000,000–$2,999,999 $4,500 plus 1.65 cents for each $ more than $1,000,000

$3,000,000–$4,999,999 $37,500 plus 1.25 cents for each $ more than $3,000,000

$5,000,000 and over $62,500 plus 1.75 cents for each $ more than $5,000,000

Rates for companies, trustees and absentees

Taxable value Rate of tax $0–$349,999 $0

$350,000–$2,249,999 $1,450 plus 1.7 cents for each $ more than $350,000

$2,250,000–$4,999,999 $33,750 plus 1.5 cents for each $ more than $2,250,000

$5,000,000 and over $75,000 plus 2.0 cents for each $ more than $5,000,000

7. Frequency of adjustment of tax rate(s)? Annual 10. Basis of valuation? For deciding the value of land, all land is taken to be unen- 8. Tax collected by? cumbered and granted in . There are two method- A) Council Rates: Local Government ologies used to undertake statutory land valuations: B) Land Tax: State Government • Site Value (non-rural land): It is the amount which 9. Assessor responsible for assessments? State Valuation non-rural land could be expected to sell for without Service (State Government) any structural improvements on the land (e.g. houses, A-59 buildings or fences). A site valuation includes site im- 8. Land used for a supported accommodation service provements made to the land such as earthworks (e.g. A & B) Concessions on valuations by State Valuation Ser- levelling, filling, or drainage works). vice under the Land Valuation Act 2010: • Unimproved Value (rural land): It is the amount for which rural land could be expected to sell for without 1. Deduction for Site Improvements (DSI) - granting of physical improvements such as houses, fences, clear- a deduction to particular owners of land for site im- ing, levelling and earthworks. If land has been valued provements to their land paid for by them in the pre- on an unimproved basis, it is either zoned rural (or vious 12 years equivalent) or is designated rural for statutory valua- 2. Exclusive use as a single dwelling house or for farm- tion purpose. ing – In deciding its value any enhancement in its value because of potential for higher use must be dis- 11. Frequency of general revaluations? regarded. Land valuations are issued annually across the state, except in 3. Discount for subdivided land not yet developed - The unusual circumstances, or where the Valuer-General deter- local government must discount the but value of the mines there has been insufficient market movement in a local relevant parcel by 40% government area to warrant an annual valuation. 15. Initial appeal process? 12. Date of last general revaluation? 2012 To challenge the valuation, an objection may be lodged with 13. Valuation date used for current assessment period? State Valuation Service (the assessor) within 60 days of the 01/10/2011 date of issue. For property valued over $5,000,000 the land- 14. Main exemptions/reliefs? owner must be invited to an objection conference for which 1. Council rates exemptions: an independent (non-government) chairperson is appointed. • Unallocated State land To challenge the valuation methodology of a property (i.e. • Land occupied by State or Government entity if an owner believes their land is rural land and should be • Land in a State forest valued using the unimproved valuation methodology,) an ap- • Aboriginal land, plication may be lodged with the State Valuation Service. If • Port land, rail corridor land, airport land, an owner does not agree with the decision they can apply to • Land used for religious, charitable, educational, rec- the Valuer-General (State Valuation Service) for an internal reational/sporting, hospital, cemetery or other public review of the decision. purposes Applications for a general rates exemption/ relief or to object against a property’s rating category are submitted to the local B) Council rates relief varies by Local Authority, but exam- authority. ples include: • Pensioner remission 16. Independent body to determine unresolved appeals? • Owner occupied cap on rate increases To challenge a valuation objection decision an appeal can be • Bushland preservation remission lodged with the Land Court of Queensland. • Not-for-profit rate remission To challenge an internal review decision (after an applica- tion to change the valuation methodology), an owner can B) Land Tax exemptions: apply for an external review through the Queensland Civil 1. Principal place of residence (if a person owns the and Administrative Tribunal (QCAT). home and lives mainly at that address), Council Rates: After objecting to a property’s rating cat- 2. Land used only for the business of primary produc- egory, an appeal against the decision can be lodged with the tion, Land Court. 3. Land used predominantly as a moveable dwelling park, 4. Land owned by a charitable institution and used for 17. Property tax revenue vs. other revenue? a qualifying exempt purpose (eg public benevolence, Council Rates: Rates are the only tax levied by local govern- charity, education, religion, provision of care) ments. Other sources of income include state grants and user 5. Land used as the location for an aged care facility charges. 6. A non-profit organisation using or occupying a build- Land Tax: Land tax comprises approximately 9.5% of state ing on the land. government taxation revenue. Refer table and chart below: 7. Land used for premises or facilities for residents of a Composition of estimated state taxation revenue for 2012- retirement village 13:

A-60 ESL and Water and sewerage rates – capital value only 3. Person tax legally imposed on? Land tax, ESL and Water and sewerage rates – owner Council rates – owner or ratepayer 4. Unit of assessment? Each separately saleable parcel of land which can be amal- gamated into a single assessment or part thereof can be val- ued if separately occupied 5. Tax rate(s) set by? Land tax, ESL and Water/Sewerage – set by State Government Council rates – set by Local Government 6. Current tax rate? Please refer to the following web sites: Source: Queensland Government State Budget 2012–13, Land tax and ESL – www.revenuesa.sa.gov.au Budget Strategy and Outlook, Budget Paper No. 2 SA Water – www.sawater.com.au Local Government Association – www.lga.sa.gov.au Queensland Government Taxation Revenue: 7. Frequency of adjustment of tax rate(s)? All reviewed annually 8. Tax collected by? Land tax, ESL and SA Water – State Government Council rates – Local Government 9. Assessor responsible for assessments? Valuer-General and Councils; Councils have the ability un- der the Local Government Act to appoint their own valuer. 10. Basis of valuation? Site value and capital value The City of Adelaide Council use an annual value 11. Frequency of general revaluations? Annually 12. Date of last general revaluation? 1st January 2012 13. Valuation date used for current assessment period? 1 January every year 14. Main exemptions/reliefs? Notional values for principal place of residence and if prop- erty is used for primary production purposes. Also, heritage considerations. Source: Queensland Government State Budget 2012–13, 15. Initial appeal process? Budget Strategy and Outlook, Budget Paper No. 2 Objection process where an owner or person who has an in- 18. Any significant recent changes and important issues? terest in a property can object to their property’s valuation to No. the Valuer-General within 60 days of their first rate notice from any of the rating authorities. The objection must be in South Australia writing and there is no fee. 1. Title of Property Tax System? 16. Independent body to determine unresolved appeals? Land tax, Council rates, Emergency Services Levy (ESL) A review panel comprised of private sector valuers appointed and Water and Sewerage rates by the Governor every 3 years and/or the Supreme Court. 2. Type of property taxed along with brief description? 17. Property tax revenue vs. other revenue? Land tax – site value (land only) however exemptions avail- able e.g. principle place of residence and if the property is 18. Any significant recent changes and important issues? used for the business of primary production There are suggestions of removing stamp duty and broaden- Council rates – site and capital value (land + improvements) ing the land tax base across all property values (removing where rebates and exemptions exist under the Local Govern- principle place of residence exemption) and SA Water mov- ment Act 1999 ing away from capital values to user pay system. A-61 Tasmania parts: an ad valorem rate (a proportion of value or rate in 1. Title of Property Tax System? There are two property tax the dollar) and a fixed charge. systems in Tasmania. 5. Tax rate(s) set by? (a) Land Tax – Land Tax is calculated on the Land Value as (a) Land Tax – State Revenue Office determined by the Valuer-General of Tasmania. (b) Council rates – Individual Municipal Councils. (b) Council rates – The majority of the 29 municipal areas of 6. Current tax rate? Tasmania base their rates on the Assessed Annual Value (a) Land Tax – State Revenue Office (AAV) of the property. AAV is the gross annual rental Rates of Land Tax (from 1 July 2010). value of a property, excluding GST, council rates and land tax, but is not to be less than 4% of the Capital Value. Total Land Value Current Tax Scale AAV has been used as a measure of property value for $0 – $24 999 Nil rating purposes in Tasmania for many years. $25 000 - $349 999 $50 plus 0.55% of value above NOTE: No reference is made in this survey to ‘Duty’ (previ- $25 000 ously known as “stamp duty”) which is a form of taxation $350 000 and above $1 837.50 plus 1.5% of value above charged by the Tasmanian Government, under the Duties $350 000 Act 2001 when someone acquires an interest in property, Note: Where two or more properties are held by one owner, usually by buying a property. The type of property and the the assessed land value of the properties is aggregated (added way it is acquired can impact the way that duty is assessed. together). Land tax is then calculated on the total (aggre- 2. Type of property taxed along with brief description? gated) land value. (a) Land Tax is applied to properties known as ‘general’ land. (b) Council rates – The amount of rates is determined by The amount of tax payable on land in this category is as- each individual municipal council depending on their sessed as at 1 July each year. Refer to question 14 for the revenue needs to deliver services within their area. properties exempt from land tax. 7. Frequency of adjustment of tax rate(s)? (b) Council Rates - Until the 2011-12 rating year all of (a) Land Tax – Annual Tasmania’s 29 councils elected to use AAV as the basis (b) Council rates – Annual. Additional rates notices are is- of their rates resolutions. In the 2011-12 rating year, 1 sued whenever a change occurs to the Land Value, Capi- council transitioned to the use of a different valuation tal Value and the AAV as determined by the Valuer-Gen- base - Capital Value. eral as part of the supplementary valuation process. Tasmania’s councils are using a variety of tools to set rates 8. Tax collected by? for their council areas. This is in keeping with the intent (a) Land Tax – State Revenue Office of the Local Government legislation, which gives broad (b) Council rates – Individual Municipal Councils. parameters for the setting of rates, while recognising the autonomy of Local Government and the flexibility it 9. Assessor responsible for assessments? requires in relation to the raising of revenue to deliver (a) Land Tax – The Office of the Valuer-General determines services for communities. There has been a good level of the relevant land value for each property. The State Rev- take-up of the rating tools provided by the Local Gov- enue Office has jurisdiction over the amount and who ernment Amendment Act 2001. pays Land Tax. 3. Person tax legally imposed on? (b) Council rates – The Office of the Valuer-General deter- (a) Land Tax – property owner. mines the land value, capital value and AAV relevant to each property or tenancy; however each municipal coun- (b) Council rates – property owner or rate paying lessee. cil is responsible for their own rating resolutions and level 4. Unit of assessment? of rates. (a) Land Tax – Land Value as at 1 July each year of each unit 10. Basis of valuation? of ownership. (a) Land Tax – Land Value (b) Council rates - Section 90 of the Local Government Act (b) Council rates – Land Value, Capital Value and AAV. 1993 enables a council to set a general rate on rateable Currently 28 councils use AAV as the basis for rating land, based on values of land (as defined in the Valuation and 1 council used Capital Value. of Land Act 2001) - Land Value, Capital Value or As- 11. Frequency of general revaluations? sessed Annual Value; unit of ownership. Fresh Valuations (revaluations) currently occur every six The composition of the general rate is outlined in section years with interim Adjustment Factors annually for Land 91 of the Local Government Act 1993 and can have two Tax purposes and biennially for Municipal rating purposes.

A-62 A Review is currently being undertaken by the Department vides a facility for eligible pensioners (ie those that include of Premier and Cabinet (Local Government Division) in re- health care card holders) to be granted a rates remission of lation to the future frequency and basis of valuations. the lesser of the prescribed maximum amount; or 30% of 12. Date of last general revaluation? the rates. The property that the rates remission applies to Fresh valuations (revaluations) are issued on a moving 6 year must be the principal place of residence, i.e. the . where the person usually lives, eats and sleeps. 1 July 2012 – 10 councils (currently underway) The prescribed amounts for 2012-13 are: 1 July 2010 – 10 councils (due again by 1 July 2016) - $275 for a Water and Sewerage Corporation client; or 1 July 2008 – 9 councils (due again by 1 July 2014) - $406 for a non Water and Sewerage Corporation client. 15. Initial appeal process? 13. Valuation date used for current assessment period? (a) Land Tax – direct to the Commissioner of State Revenue. 1 July in the year of revaluation. The values are proclaimed (b) Council rates – property owners or rate paying lessees can and become effective for rating and taxing purpose in the write directly to the relevant municipal council. There is following year 1 July. (i.e. 2012/13 revaluation become effec- no set format. tive 2013/14 rating and taxing year.) Neither (a) or (b) are within the jurisdiction of the Val- 14. Main exemptions/reliefs? uer-General. (a) Land Tax – Is not payable on the following types of prop- Section 28 of the Valuation of Land Act 2001 outlines the erty: objection process against a valuation. That Section states - An owner’s principal place of residence. This is land on An owner of land who is dissatisfied with – which a dwelling is erected. The dwelling must be the (a) a valuation of that land made under section 11, 18, 20 or place where the owner of at least a 50% interest in the 21; or land ordinarily eats and sleeps. Leaving personal posses- (b) the provision of a certificate under section 44 –may, sions at a property or using it as a weekend home gener- within 60 days after receipt of a notice under section 27 ally does not qualify the property for the classification. or the provision of that certificate, post to or lodge with Primary production land which is used substantially for the Valuer-General an objection, in an approved form, the business of primary production. Also included are against the relevant valuation stating fully and in detail private timber reserves declared under the Forest Prac- the grounds on which he or she relies and stating any tices Act 1985. changes to the values specified in that valuation or cer- Property used by the owners for religious purposes; as a tificate which he or she considers should be made. medical establishment; for Aboriginal cultural activities In relation to adjustment factors for both Land Value and and is Aboriginal land; and/or used to operate a retire- AAV, Section 50B of the Valuation of Land Act 2001, pro- ment village, or for related purposes; vides a process for the review of a determination as follows: Or if: (1) An owner of land or a rating authority, within a period the land is subject to a conservation covenant; or owned of 60 days after a copy of a determination is published in by a charitable institution. the Gazette under section 50A, may apply to the Valuer- Where a principal place of residence is built on vacant General for a review of that determination. land owned as at 1 July of a financial year, a rebate up to (2) An application for a review of a determination is to be in the amount of the land tax paid or payable can be claimed. writing and accompanied by a statement of the grounds Sporting clubs are not exempt, but may be entitled to a on which the application is made and any supporting evi- concessional rate of tax depending on the rules or objec- dence on which the applicant proposes to rely. tives of the club. (3) As soon as may be practicable, the Valuer-General is to – In certain circumstances, deferring payment or paying by (a) consider the application; and instalments may be available. The State Revenue Office (b) affirm or vary the determination to which it relates. must consider a case to be of genuine financial hardship (4) The Valuer-General is to – before agreeing to either of the above. If approved, in- (a) give notice in writing of any variation or affirmation stalments can only be paid by direct debit from the ap- to the applicant; and plicant’s bank or similar financial institution account and (b) cause a copy of any varied adjustment factor to be the applicant must maintain sufficient funds in their ac- published as provided by section 50A(7)(b). count to guarantee payment by the agreed due date/s. (5) A determination varied under this section has the same (b) Council rates – effect as if it had been made under section 50A. Each Council determines their own rating resolutions and (6) A determination, affirmation or variation made by the main exemptions/rate reliefs, however the Department of Valuer-General under this Part is not subject to review Treasury and Finance (via the State Revenue Office), pro- under the Judicial Review Act 2000.

A-63 16. Independent body to determine unresolved appeals? 2009 - 2013 General Rates (a) Land Tax – No. Disagreements and objections are made Total taxable value of to the Commissioner for State Revenue. Land tax payable landholdings (b) Council rates - none In relation to a valuation for land value, capital value or AAV, $1,800,000 to $9,375 plus 1.3% of amount Section 34 of the Valuation of Land Act 2001, outlines the < $3,000,000 > $1,800,000 $24,975 plus 2.25% of role and procedures for the Land Valuation Court. $3,000,000 and over amount > $3,000, 17. Property tax revenue vs. other revenue? (a) Land Tax – In Tasmania, approximately $90m per an- 7. Frequency of adjustment of tax rate(s)? num is raised via Land Tax. The total taxation revenue is (a) Annually approximately $922m as per the 2012-13 revised Depart- (b) Ad hoc adjustments ment of Treasury and Finance mid year report. 8. Tax collected by? (b) Council rates – Not available. (a) Local Government. 18. Any significant recent changes and important issues? (b) State Government. (a) Land Tax – From 1 July 2010 a reduction was made to 9. Assessor responsible for assessments? the percentage payable for properties with a Land Value (a) State Valuers 11 municipalities; Local Government Valu- of $350,000 and above. ers 68 Municipalities (b) Council rates – no comment. (b) State Valuers 11 municipalities; Local Government Valu- ers 68 Municipalities 10. Basis of valuation? Victoria (a) C IV – market value of property 73; NAV 6 1. Title of Property Tax System? (b) Site value – market value less improvements on land (a) Municipal rates 11. Frequency of general revaluations? (b) Land Tax (a) Every 2 years 2. Type of property taxed along with brief description? (b) Every 2 years (a) Only real property 12. Date of last general revaluation? (b) Only real property (Land) (a) 2012 3. Person tax legally imposed on? (b) 2012 (a) Owner 13. Valuation date used for current assessment period? (b) Owner (a) 01/01/2012 4. Unit of assessment? (b) 01/01/2012 (a) Separate occupation 14. Main exemptions/reliefs? (b) Separate occupation Commonwealth Government owned land, State Govern- 5. Tax rate(s) set by? ment owned land, Local Council owned land, charitable use (a) Local Govt. land schools hospitals etc., land owned by religious bodies (b) State Govt and public utilities railways and roads. Primary production land, Owners principal place of resi- 6. Current tax rate? dence, Commonwealth Government owned land, State (a) Varies from each Local Govt depending on revenue Government owned land, Local Council owned land, chari- ­required table use land schools hospitals etc, land owned by religious (b) Land tax bodies and public utilities railways and roads. 2009 - 2013 General Rates 15. Initial appeal process? Objection to valuer Total taxable value of Land tax payable 16. Independent body to determine unresolved appeals? landholdings VCAT (Victorian Civil Arbitration Tribunal) < $250,000 Nil 17. Property tax revenue vs. other revenue? $275 plus 0.2% of amount > $250,000 to < $600,000 On Av.50 % of total Council revenue $250,000 10 % of total tax revenue $975 plus 0.5% of amount > $600,000 to < $1,000,000 18. Any significant recent changes and important issues? $600,000 A new proposed fire services levy to fund state-wide fire bri- $1,000,000 to $2,975 plus 0.8% of amount gades (CFA MFB) is to be collected from all properties from < $1,800,000 > $1,000,000 01/06/2013 A-64 Western Australia 6. Current tax rate? 1. Title of Property Tax System? There are two valuation 6.1 LAND TAX rolls used for rating and taxing in Western Australia; TAX TABLE – UNIMPROVED VALUE a) Unimproved value (UV) – a.1 Site value within Perth Exceeding Not Rates Metro Region and all town sites, includes merged improve- ($) exceeding ($) ments 0 300,000 NIL a.2 land outside townsites – unimproved value of land assum- 0.09 cent for each $1 in ing any improvements hadn’t been made. A number of for- 300,000 1,000,000 excess of $300,000 mulae driven approaches apply to less than freehold interests. b) Gross Rental Value (GRV): $630.00 + 0.47 cent “gross rental value” of land means the gross annual rental that 1,000,000 2,200,000 for each $1 in excess of the land might reasonably be expected to realize if let on a tenancy $1,000,000 from year to year upon condition that the were liable for $6,270.00 + 1.22 cents all rates, taxes and other charges thereon and the insurance and 2,200,000 5,500,000 for each $1 in excess of other outgoings necessary to maintain the value of the land. $2,200,000 Where GRV can’t be determined on the primary definition $46,530.00 + 1.46 cents above, assessed value applies: 5,500,000 11,000,000 for each $1 in excess of “assessed value” of land means such percentage of the capital $5,500,000 value thereof as may from time to time be prescribed; $126,830.00 + 2.16 cents This currently 3% for residential land and 5% for all other 11,000,000 and upwards for each $1 in excess of lands. $11,000,000 2. Type of property taxed along with brief description? Note: The land tax rate scale is reviewed annually as part of the Real property for both. budget review process NB: In some properties plant and equipment have been 6.1.1 METROPOLITAN REGION IMPROVE- ruled by the courts to be included in the gross rents/assessed MENT TAX – (MRIT) value (e.g. Lifts and running gear). 0.14 cent for every dollar of the land-taxable value 3. Person tax legally imposed on? Owner. 6.1.2 BIOSECURITY LEVY – rate not yet known, ap- plied to the rural land values (Unimproved, uncleared). 4. Unit of assessment? 6.2 LOCAL GOVERNMENT RATES Ratable value determined in a general valuation and pub- GRV - urban land and UV - agricultural land and remote/ lished in a ‘valuation roll’. pastoral land. Some land at the edge of urban local govern- 5. Tax rate(s) set by? ments remain on UV. 5.1 LAND TAX - set by the Office of State Revenue (OSR), Each local government set their own rates in the $ of value. Department of Finance. 6.3 WATER CORPORATION and APPROVED AGEN- 5.2 METROPOLITAN REGION IMPROVEMENT CIES (eg Fire and Emergency Service levy) - Each set their TAX – set by the State Planning Commission/ Metropoli- own based on GRV tan Region scheme but collected by OSR. It is a tax in the 7. Frequency of adjustment of tax rate(s)? form of additional land tax and assessed on the same basis. It LAND TAX – reviewed annually, however have remained applies principally to urban property owners who obtain the stable of past 5 years. main benefit from development of development and infra- LOCAL GOVERNMENTS – annual and typically always structure requiring funding. change 5.3 Local government rates – set by 138 autonomous lo- OTHER AGENCIES – as required - typically annually cal governments in accordance with provisions of the Local Government Act 1995. Gazetted an subject to audit by Dep’t 8. Tax collected by? Local Government. 8.1 LAND TAX, MRIT and BIOSECURITY LEVY- 5.4 Emergency Services levy – set by Dep’t of Fire and Office of State Revenue (Finance Dept) on behalf of Emergency Services (DFES). GRV based and universal levy agencies. applying to otherwise non-rateable land. 8.2 LOCAL GOVERNMENT RATES AND FIRE AND 5.5 Residential Waste water and all main drainage charges EMERGENCY SERVICE LEVY – Local governments (GRV based) set by the Water Corporation. (ESL collected on behalf of DFES). 5.6 Biosecurity Levy - new tax to be progressively collected 8.3 WATER AND DRAINAGE RATES (Where based on from owners of agricultural land by the Dep’t of Food and GRV) – Water Corporation of Western Australia and ap- Agriculture (UV based). proved water providers. A-65 9. Assessor responsible for assessments? Valuer - General regional local government other than for the purposes 10. Basis of valuation? See 1 above of a trading undertaking (as that term is defined in and for the purpose of section 3.59) of the regional 11. Frequency of general revaluations? local government; 11.1 Unimproved values – annual • (d) land used or held exclusively by a religious body as 11.2 Gross Rental Value – varies according to a general valu- a place of public worship or in relation to that worship, ation cycle by district. Major areas 3 yearly; others 4 years. a place of residence of a minister of religion, a convent, There are 138 local governments in Western Australia. nunnery or monastery, or occupied exclusively by a re- 12. Date of last general revaluation? ligious brotherhood or sisterhood; 12.1 Unimproved values currently in force – effective date 1 • (e) land used exclusively by a religious body as a school August 2011 for the religious instruction of children; 12.2 Gross Rental Values – as required in cycle, see 11.2 above. • (f ) land used exclusively as a non-government school Date of valuation is 1 August to align with UV program. within the meaning of the School Education Act 1999; 13. Valuation date used for current assessment period? • (g) land used exclusively for charitable purposes; The date of valuation is 1 August of the year preceding the • (h) land vested in trustees for agricultural or horticul- date the general valuation comes into force (i.e. 30 June for tural show purposes; UV and 1 July for GRV) except the 30 LGs within Perth • (i) land owned by Co-operative Bulk Handling Lim- Metropolitan Region where the general valuation comes into ited or leased from or a statutory author- force 23 months after the date of valuation. ity (within the meaning of that term in the Financial Administration and Audit Act 1985) by that company 14. Main exemptions/reliefs? and used solely for the storage of grain where that • Usual exemptions apply across all rating and taxing company has agreed in writing to make a contribution – typically Crown lands , public purposes, religious, to the local government; private schools and institutions, charitable institu- • (j) land which is exempt from rates under any other tions, show grounds, local government owned land written law; and not used for profit, are exempt from rates and land • (k) land which is declared by the Minister to be ex- taxes. See S26 Local Government Act 1995 below for empt from rates. full details: • (3) If Co-operative Bulk Handling Limited and the • 6.26. Rateable land relevant local government cannot reach an agreement • (1) Except as provided in this section all land within a under subsection (2)(i) either that company or the lo- district is rateable land. cal government may refer the matter to the Minister • (2) The following land is not rateable land ¾ for determination of the terms of the agreement and • (a) land which is the property of the Crown and ¾ the decision of the Minister is final. • (i) is being used or held for a public purpose; or • (4) The Minister may from time to time, under subsec- • (ii) is unoccupied, except ¾ tion (2)(k), declare that any land or part of any land • (I) where any person is, under paragraph (e) of the is exempt from rates and by subsequent declaration definition of }owner~ in section 1.4, the owner of the cancel or vary the declaration. land other than by reason of that person being the • (5) Notice of any declaration made under subsection holder of a prospecting licence held under the Min- (4) is to be published in the Gazette. ing Act 1978 in respect of land the area of which does • (6) Land does not cease to be used exclusively for a not exceed 10 hectares or a miscellaneous license held purpose mentioned in subsection (2) merely because under that Act; or it is used occasionally for another purpose which is • (II) where and to the extent and manner in which a of a charitable, benevolent, religious or public nature. person mentioned in paragraph (f ) of the definition • In addition, land tax exemptions apply to nearly all of }owner~ in section 1.4 occupies or makes use of primary producers meeting certain tests, all principle the land; places of residence, pastoral leases, all mining and pe- • (b) land in the district of a local government while it troleum tenements. In addition relief by way of rebates is owned by the local government and is used for the and concessions apply to pensioners. purposes of that local government other than for pur- • The one exception applies to the DFES ESL – this is poses of a trading undertaking (as that term is defined a universal levy applying to all land owners including in and for the purpose of section 3.59) of the local land exempt under the other rating and taxing laws. government; • Owners of uncleared land in agricultural areas may re- • (c) land in a district while it is owned by a regional ceive a concessional valuation where they enter into a local government and is used for the purposes of that Soil and Land Conservation Agreement.

A-66 • Owners of land subject to a registered Heritage 8. Tax collected by? Municipality Agreement may also receive various concessions and 9. Assessor responsible for assessments? bonuses. Municipality is responsible for its own assessments. These 15. Initial appeal process? must meet the standards and review of the “Assessment Formal objection rights to the Valuer-General within 60 Standards Branch” of the Province. Linear assessment is days of the issue of a notice for rates or taxes or the date the performed by the Linear Property Assessment Unit of the general valuation is gazette by the Valuer-General whichever Provincial Government. date is the latter. 10. Basis of valuation? Market Value 16. Independent body to determine unresolved appeals? 11. Frequency of general revaluations? Annually The State Administrative Tribunal of Western Australia, Re- sources Division - http://www.sat.justice.wa.gov.au/default. 12. Date of last general revaluation? Varies by municipality aspx 13. Valuation date used for current assessment period? July 17. Property tax revenue vs. other revenue? Not available 1, 1 year prior to the tax year. 18. Any significant recent changes and important issues? 14. Main exemptions/reliefs? No. Facilities used chiefly for • Religious services • Community games CANADA • Education Alberta • Municipal Infrastructure 1. Title of Property Tax System? 15. Initial appeal process? A municipal taxation system that bases taxes on the value of Alberta has a one-level assessment complaint system. Under property. this system, there are two types of assessment review boards. 2. Type of property taxed along with brief description? The local assessment review board (LARB) is comprised Land and Improvements: Land and improvements are as- of three members appointed by the municipality and hears sessed using the market value-based standard, except farm- complaints on: land, railway, linear, and machinery and equipment, which • tax notices other than property tax notices, and are assessed in accordance with the Alberta Assessment • assessments for Minister’s Guidelines. • residential properties with three or fewer dwelling Business Tax: The definition of a business is found in the units, and Municipal Government Act Section 1(1)(a). Municipal • farmland council must pass a business tax bylaw in order to impose a The composite assessment review board (CARB) consists of business tax. two members appointed by the municipality and a provincial member appointed by the province and hears complaints on: 3. Person tax legally imposed on? • non-residential property assessments, and Land and Improvements – Owner of record (Land Titles) • assessments of residential property with four or more Business Tax – Occupant dwelling units, and 4. Unit of assessment? • machinery and equipment Parcel of ownership Complaints about linear property and equalized assessments Land and Improvements – Market Value in Dollars are heard by the MGB. Business Tax –The bylaw must specify one or more of the 16. Independent body to determine unresolved appeals? following methods to prepare the business assessments: An appeal of an assessment review board decision lies to the • a percentage of gross annual rental; Court of Queen’s Bench on a question of law or jurisdiction. • a percentage of net rental value; The decision of an ARB can be appealed to the Court by any • storage capacity of the premises; of the following: • rate per unit area of floor space; • An assessed person, • a percentage of property assessment. • A taxpayer, This bylaw may also: • An assessor, or • exempt identified classes of business; • A municipality, if the decision being appealed relates • establish groupings for business classes to property that is within the boundaries of that mu- 5. Tax rate(s) set by? Municipality nicipality. 6. Current tax rate? Varies widely by municipality 7. Frequency of adjustment of tax rate(s)? Annually

A-67 An application for leave to appeal must be filed with the is funded by the provincial government or a health authority Court of Queen’s Bench within 30 days after the persons for the provision of housing that includes on-site support notified of the hearing receive the decision of the ARB. services for persons who were previously homeless, at risk of 17. Property tax revenue vs. other revenue? homelessness, and who are affected by mental illness or who Property tax and Business tax are the primary sources of Mu- are recovering from drug or alcohol addictions or have other nicipal Funding as well as Provincial Education funding. barriers to housing. 18. Any significant recent changes and important issues? Class 4: Major Industry — land and improvements (build- The one level assessment complaint system is relatively new ings and structures) of prescribed types of industrial plants, and the Municipal Government Act is under review for up- including lumber and pulp mills, mines, smelters, large man- dating by the Provincial Government. (http://www.munici- ufacturers of specified products, ship building and loading palaffairs.alberta.ca/mga_review.cfm) terminals for sea-going ships. Class 5: Light Industry — property used or held for ex- British Columbia (BC) tracting, processing, manufacturing or transporting products, *Note: Throughout this survey where national/subna- including ancillary storage. Scrap metal yards, wineries and tional is referenced, BC Assessment is a Crown Corpora- boat-building operations fall within this category. Excep- tion, which reports to a Ministry at the Provincial level tions include properties used for the production or storage (subnational). of food and non-alcoholic beverages and retail sales outlets, 1. Title of Property Tax System? which fall into Class 6. British Columbia uses an ad valorem system of property Class 6: Business and Other — property used for offices, taxation, meaning “based on value”. retail, warehousing, hotels and motels all fall within this Property taxation is the main source of revenue for local gov- category. This class includes properties that do not fall into ernments. Municipalities have authority under Part 7 of the other classes. Community Charter to tax property owners; this same au- Class 7: Managed Forest Land — privately-owned, forest thority does not apply to regional districts. Instead, the Local land managed in accordance with the Private Managed For- Government Act provides the authority for regional districts est Land Act or the Forest and Range Practices Act. Prop- to establish bylaws setting out maximum taxation amounts. erty owners in this class have an obligation to provide good The Province taxes property owners on the regional districts’ resource management practices, such as reforestation, care of behalf and remits the revenue to the regional district. young trees, protection from fire and disease and sound har- Property taxes are calculated on the basis of the market value, vesting methods. or “assessment”, of land, improvements (or both) and the municipal “tax rate”. Most local governments calculate taxes Class 8: Recreational Property, Non-profit Organization using the variable tax rate system where tax rates are based on — includes two very different categories: a dollar figure per $1,000 dollars of assessed property value. Recreational Land For more information on Home Owner Grants and Tax Ex- • land used solely as an outdoor recreational facil- emption programs, please see: http://www.cscd.gov.bc.ca/ ity for specific activities such as golf, skiing, tennis, lgd/finance/property_tax.htm public swimming pools, waterslides, amusement 2. Type of property taxed along with brief description? parks, marinas and hang gliding. Improvements on BC Assessment is required to classify properties into one of the land (such as a clubhouse) fall into Class 6. nine property classifications as outlined in the Assessment • land in a rural area that is part of parcel used for Act: overnight commercial accommodation that exists Class 1: Residential — single-family residences, multi-fam- predominantly to facilitate specific outdoor recre- ily residences, duplexes, apartments, condominiums, nursing ational activities such as , fishing and kaya- homes, seasonal dwellings, manufactured homes, some va- king. Improvements on the land most likely fall cant land, farm buildings and daycare facilities. within Class 6 (e.g. a hotel). Class 2: Utilities — structures and land used for railway Non-Profit Organization Land and Improvements transportation, pipelines, electrical generation or transmis- • property used or set aside for at least 150 days per sion utilities, or telecommunications transmitters. This prop- year as a place of public worship or as a meeting erty class does not include gathering pipelines, offices or sales hall by a non-profit, fraternal organization. The outlets. 150 days cannot include activities with paid ad- Class 3: Supportive Housing —this property class only mission or the sale/consumption of alcohol. includes eligible supportive housing property that has been • additionally, the 150 days needs to be in the year designated by Cabinet. Eligible supportive housing property ending on June 30 of the calendar year preceding

A-68 the calendar year for which the assessment roll is 14. Main exemptions/reliefs? Exemptions from property being prepared. tax may be whole or partial. Class 9: Farm — to qualify as farm for assessment purposes, The majority of property tax exemptions are contained in the land must produce a prescribed amount of qualifying pri- taxing statutes such as the Community Charter, the Vancou- mary agricultural products for sale, such as crops or livestock. ver Charter, the Local Government Act and the Taxation Farm buildings come within Class 1. (Rural Area) Act. However, exemptions are also set out in more subject-specific legislation such as the School Act, the Split Classification –Property with several distinct uses can Health Authorities Act or the University Act. fall into more than one class. For example, commercial and residential space might be combined in one building, or a More information about property taxation and exemptions property combines residential, farm and forest land. In these can also be found at the following provincial government links: cases, BC Assessment determines the share of the value of 1) Municipalities - http://www.cscd.gov.bc.ca/lgd/finance/ the property attributable to each class. property_tax.htm 3. Person tax legally imposed on? Owner or occupier 2) Rural areas - http://www.sbr.gov.bc.ca/individuals/Prop- erty_Taxes/Rural_Property_Tax/rpt.htm 4. Unit of assessment? Parcel of ownership (Canadian dollars) 15. Initial appeal process? 5. Tax rate(s) set by? The first level of appeal is to file a “Notice of Complaint” Municipality or taxing authority. Surveyor of Taxes (Min- (Appeal) to the Property Assessment Review Panel (PARP). istry of Finance) for Rural Properties (land outside cities, However, owners are encouraged to contact BC Assessment towns, districts and village boundaries in BC) to discuss their assessment prior to filing an appeal. If the 6. Current tax rate? owner and BC Assessment agree to a change, an amendment Rates are set at the municipal level, in addition to amounts can be made without going to PARP. prescribed by the provincial government (i.e. school tax por- Property Assessment Review Panels are appointed by the tion, by property class). For most recent tax rates, see: http:// Minister to provide property owners with an independent, www.cscd.gov.bc.ca/lgd/infra/statistics_index.htm accessible and equitable forum for review and consideration 7. Frequency of adjustment of tax rate(s)? Annually (by May 15) of property assessment. There are approximately 75 panels which sit throughout the province, each consisting of a chair 8. Tax collected by? and 2 members. Municipality/Taxing Authority or Surveyor of Taxes (Min- PARP hearings take place between February 1 and March 15 istry of Finance) for rural properties. each year. At this level, the appeal is called a review or complaint. 9. Assessor responsible for assessments? Any person is entitled to file a complaint about their own or BC Assessment has 10 Assessors who are responsible for 15 another assessment on the grounds set out in s. 32 of the As- offices throughout the province. It is the Assessor’s respon- sessment Act and to have that assessment reviewed by a PARP. sibility to oversee their staff in the production of an annual For more information on the Property Assessment review assessment roll. process, please see the following factsheet on our public 10. Basis of valuation? website: http://www.bcassessment.ca/public/Fact%20Sheets/ Market value. Section 19 (1) of the Assessment Act of Brit- Property%20Assessment%20Review%20Process.aspx ish Columbia, RSBC 1996, Chapter 20, defines Actual Value 16. Independent body to determine unresolved appeals? as “the market value of the fee simple interest in land and If a person is unhappy with the decision of the Property As- improvements.” sessment Review Panel (PARP), they may file an appeal to Some special purpose properties (e.g. Telecommunications, the Property Assessment Appeal Board (PAAB). There is a Railways, Pipelines, Electrical Power Generating Facilities) $30 filing fee for each folio appealed at this level, and appeals may be assessed using Regulated Rates, or under legislated must be filed no later than April 30. provisions (e.g. Supportive Housing properties must be des- ignated by Cabinet, and value is set at $1 land, $1 improve- 17. Property tax revenue vs. other revenue? ments, for a total assessed value of $2). Amount and percentage of property tax revenue at national/ 11. Frequency of general revaluations? Annually subnational level as compared to all other tax revenue at na- tional/subnational level? 12. Date of last general revaluation? The 2013 Assessment Total Property Taxation Revenue from the province in 2012: roll was finalized and Assessment Notices were sent to own- $1,773,000,000 ers on December 31, 2012. This represents 9.53% of total taxation revenue at the provin- 13. Valuation date used for current assessment period? July cial level. (2012 Total Taxation Revenue - $18,614,000,000) 1 of the year previous to the assessment roll year (tax year). Source: http://www.fin.gov.bc.ca/ocg/pa/11_12/Public%20 E.g. July 1, 2012 for 2013 Assessment Roll. Accounts%2011-12.pdf

A-69 18. Any significant recent changes and important issues? of assessment. All local governments tax those properties at • Commencing in January 2011, property in Class 1.5 times the corresponding residential rate 4 – Major Industry and Class 5 – Light industry 7. Frequency of adjustment of tax rate(s)? Tax rates are ad- qualified for a credit equal to 60% of the property justed annually. taxes imposed under the School Act. For the 2009 and 2010 tax years, this industrial property tax 8. Tax collected by? credit was 50%. For the 2013 budget, it was an- Taxes are collected by the province and distributed to the nounced that this credit would be rolled back to appropriate municipalities and LSDs. 30%, and ultimately, will no longer be available for 9. Assessor responsible for assessments? the 2014 tax year. Valuation services are provided by the Assessment Division • Provincial Farm land tax credit – for 2011 and of Service New Brunswick. subsequent years, a provincial farm land tax credit 10. Basis of valuation? is available. The credit reduces the school tax for Basis of market valuation is an effective date of January 1 on Class 9 (Farm) properties as classified under the each assessment and taxation year. All real property is valued at Assessment Act. The credit amount is 50% of the its “real and true value” essentially the same as “market value”. school tax payable. 11. Frequency of general revaluations? Annually New Brunswick 12. Date of last general revaluation? January 1, 2013 1. Title of Property Tax System? 13. Valuation date used for current assessment period? Municipal Property Tax January 1, 2013 There are two levels of property taxation [provincial and mu- 14. Main exemptions/reliefs? nicipal/local] in New Brunswick. Universities, non-profit low-rent housing, churches, cemeter- Both the province and municipalities establishing separate ies, ice rinks, provincial parks historical and literary societies tax rates within two property classes [residential and non- as well as volunteer rural fire departments are all exempt. Tax residential]. relief for deferral of tax on agricultural land and buildings is 2. Type of property taxed along with brief description? available. Three sectors of transportation infrastructure [ma- 2. All real property [land and buildings] is assessed jor cargo ports, certified airports and rail right-of-way] along 3. Municipal is imposed on the sale with crude oil tanks and pipes are exempted by legislation. of a property at the rate of 0.25% of the property 15. Initial appeal process? value. The initial appeal may be made by a “Request for Review of 3. Person tax legally imposed on? Assessment” directly to SNB at which point the assessor will The company or individual who owns the property review the property details and either confirm or amend the 4. Unit of assessment? assessment. The property unit of assessment is market value of the entire 16. Independent body to determine unresolved appeals? property. 9. A taxpayer who is not satisfied with the assessor’s 5. Tax rate(s) set by? review may appeal to the Assessment And Plan- In New Brunswick there are two tax classifications these be- ning Appeal Board [APAB] ing residential and non-residential. The tax rate for each cat- 10. Any taxpayer not satisfied with the ruling may ap- egory is established on an annual basis by the individual mu- peal to the Court of Queen’s Bench of New Bruns- nicipality. The Province establishes the rates for Local Service wick. Districts (LSDs). The provincial government also applied to 17. Property tax revenue vs. other revenue? tax to cover cost of provincially provided services, such as The amount of taxes collected by each municipality is un- roads. The tax is applied to properties including rental, in- known. dustrial, recreational, and commercial and homes in LSDs. 18. Any significant recent changes and important issues? 6. Current tax rate? The former Capped Rate on residential property is being Tax rates are applied to property assessment and (based on phased out. Current property owners will have a base excep- market value) which can change from year to year. The con- tion which will stay in place until the property is sold. The vention is to express the tax rate as per $100 of assessment, provincial government has made plans to reduce the amount e.g. the province levies a property tax on residential property of tax that is imposed on rental properties, commercial prop- [commercial and industrial] at a rate of $2.25 for each $100 erties and second homes.

A-70 Newfoundland 10. Basis of valuation? 1. Title of Property Tax System? Basis of market valuation is “actual value” essentially the Municipal Property Tax. Property assessment in Newfound- same as “market value”. land is conducted by the Municipal Assessment Agency Inc. 11. Frequency of general revaluations? Properties are as- The City of St. John’s administers their assessment and tax sessed on a three-year cycle. collection separately. Property assessment is an elective tax at 12. Date of last general revaluation? January 1, 2013 the municipal level. Currently, 226 municipalities have im- 13. Valuation date used for current assessment period? posed a real property tax and a business tax. January 1, 2011 2. Type of property taxed along with brief description? 14. Main exemptions/reliefs? 4. All real property [land and buildings] is assessed Universities, churches, cemeteries, productive farmland, des- 5. Land transfer tax is not payable. However a registra- ignated with lots in the buildings associated with both. Mu- tion fee equal to $100 plus 0.4% of the value of the nicipal councils have the authority to upper tax relief on an property in excess of $500 is imposed by the province. individual basis. 6. Municipalities may choose to adopt a business oc- 15. Initial appeal process? cupancy tax. The rate can vary by type of business The initial appeal may be made directly to the Municipal As- and the taxes are set as a percentage of the assess- sessment Authority. There is a filing fee associated with all -ap ment of real property use either that business or as peals. The fee is returned if the appeal is successfully reduced. a percentage of the gross business of the enterprise. 16. Independent body to determine unresolved appeals? This is in addition to the real property tax. 1. A taxpayer who is not satisfied with the asses- 7. Real property is classified for tax purposes as either sor’s review may appeal to the Assessment Review commercial property, residential property or partly Commission. one partly the other. 2. Any taxpayer not satisfied with the ruling of the 8. Municipalities that do not adopt a market value Assessment Review Commission may appeal to base operate under a system. the Trial Division, Supreme Court of Newfound- land and Labrador. 3. Person tax legally imposed on? 1. The company or individual who owns the property 17. Property tax revenue vs. other revenue? is responsible for the real property tax. The amount of taxes collected by each municipality is un- known. 2. The owner and the occupant are responsible for the proportional values and area occupied, if a business 18. Any significant recent changes and important issues? tax is applicable. N/A 4. Unit of assessment? The property unit of assessment is market value of the entire Nova Scotia property. Business tax is a proportion. 1. Title of Property Tax System? Municipal Property Tax. 5. Tax rate(s) set by? 2. Type of property taxed along with brief description? Real The Municipal Assessment Agency determines the values Property only and assessment. The municipality sets the mill rate to be used 3. Person tax legally imposed on? Owner for the calculation of real property tax and business tax. 4. Unit of assessment? Fee simple ownership in same loca- 6. Current tax rate? tion for same use. Tax rates are applied to property assessment and (based on market value) which can change from year to year. The con- 5. Tax rate(s) set by? Each municipality vention is to express the tax rate as Mills or $1,000.00 of 6. Current tax rate? Varies by municipality assessment. 7. Frequency of adjustment of tax rate(s)? Annual 7. Frequency of adjustment of tax rate(s)? Annually 8. Tax collected by? Municipality 8. Tax collected by? Municipality 9. Assessor responsible for assessments? 9. Assessor responsible for assessments? Province wide “not for profit” government corporation The MAA is a self-funding Crown Corporation whose sole owned by the municipalities called Property Valuation Ser- purpose is to prepare real property assessments. vices Corporation.

A-71 10. Basis of valuation? Market Value on January 1st two 6. Current tax rate? years prior to the tax year. • All properties are assessed by MPAC at 100% of 11. Frequency of general revaluations? Annual current value (market value) with the following ex- ceptions: 12. Date of last general revaluation? 2013 Farmland - based on current use st 13. Valuation date used for current assessment period? 1 Managed forests - based on lower of a prescribed January 2011 rate based on farmland values or market value 14. Main exemptions/reliefs? Pipelines, hydro and rail corridors - based on pre- Seasonal business designation results in 25% tax relief. scribed rates Resource land taxed at $0.25/acre. Hotel condominium units - valued on the same ba- Can apply for non profit status. sis as similar hotel held in fee simple Residential property assessment increases capped at inflation • The properties are divided into 36 classes/sub- rate. classes. 15. Initial appeal process? Appeal to PVSC • Ontario Regulation 282/98 - under the Assess- ment Act - determines these categories as follows: 16. Independent body to determine unresolved appeals? 1. Residential Yes – initially to Regional Assessment Appeal Court then to 2. Residential farmland awaiting development, Public Utility and Review Board. Phase 1 17. Property tax revenue vs. other revenue? 3. Residential farmland awaiting development, Not known. Property Tax main revenue source for munici- Phase 2 palities. 4. Resort condominiums 18. Any significant recent changes and important issues? 5. Multi-residential, occupied Residential property assessment increases were capped at the 6. Multi-residential farmland awaiting develop- inflation rate about three years ago. The “cap” is lost if the ment, Phase 1 property is sold or redeveloped. Cap eligibility requires that 7. New multi-residential the property be owned at least 50% by a Nova Scotia resident. 8. Commercial, occupied 9. Commercial, excess land Ontario 10. Commercial, vacant land 1. Title of Property Tax System? 11. Commercial farmland awaiting development, • There is one property tax system in Ontario. Phase 1 • Approximately 4,000,000 residential and non-resi- 12. Commercial farmland awaiting development, dential properties are assessed and taxed. Phase 2 • There is only one Assessment Authority for the en- 13. Office buildings tire province: the Municipal Property Assessment 14. Office buildings, excess land Corporation (MPAC). 15. Official buildings, vacant land • Ontario municipalities levy tax and they collect ap- 16. Shopping centres proximately CAN $23 billion annually, of which 17. Shopping centres, excess land approximately 50% is collected from non-residen- tial properties. 18. Shopping centres, vacant land 19. Parking lots and vacant land 2. Type of property taxed along with brief description? 20. Parking lots and vacant excess land • All real property in Ontario is liable to assessment 21. Professional sports facilities and taxation. 22. Professional sports facilities, excess land • There is only real property tax levied. 23. Professional sports facilities, vacant land 3. Person tax legally imposed on? 24. Industrial, occupied • The owner of the property is liable for the tax. 25. Industrial, excess land • Tenants (occupiers) do not receive a separate as- 26. Industrial, vacant land sessment notice or tax bills. 27. Industrial farmland awaiting development, 4. Unit of assessment? Phase 1 Each separate (legal) parcel of land is assessed and taxed. 28. Industrial farmland awaiting development, 5. Tax rate(s) set by? Phase 2 All tax rates are set by the municipalities (local governments). 29. Large industrial Provincial education tax rate set by the province. 30. Large industrial, excess land

A-72 31. Large industrial, vacant land t) Small theatres 32. Pipelines u) Hydro-electric generating stations 33. Farmlands v) Poles and wires 34. Managed forest 15. Initial appeal process? 35. Railway rights of way • For residential properties there is a mandatory “Re- 36. Hydro rights of way quest for Reconsideration” for all other properties it • The municipalities determine the tax rates accord- is discretionary. ingly. • It is a procedure available at the request of the as- 7. Frequency of adjustment of tax rate(s)? Annually sessed person to request a reconsideration of the 8. Tax collected by? Local government assessment from the Assessor (MPAC). 9. Assessor responsible for assessments? • For all other properties appeals may be filed an- • Valuation assessments are provided by the Munici- nually by March 31st to the Assessment Review pal Property Assessment Corporation (MPAC). Board (ARB), an independent tribunal. Note: If a • It is a central agency dealing with all properties property owner participates in the Request for Re- situated in the province. consideration process the deadline for appeal is 60 10. Basis of valuation? Current value which is synonymous days from the date MPAC sends its response. with market value. 16. Independent body to determine unresolved appeals? 11. Frequency of general revaluations? All properties are Yes, the Assessment Review Board, an independent tribunal. reassessed every four years The Board is composed of a Chair and a number of Vice- 12. Date of last general revaluation? Chairs and other members, all of whom are appointed by the • The last general revaluation took place in 2008 for Lieutenant Governor in Council. 2009 taxation 17. Property tax revenue vs. other revenue? • In 2012, all properties are being revalued with a • No significant changes. common valuation date of January 1, 2012 for the • Province is in the process of reassessing all a prop- next 4-year cycle which will commence in 2013. erties for taxation years 2013-2016 (4-year roll) 13. Valuation date used for current assessment period? 18. Any significant recent changes and important issues? January 2012 will be the valuation basis for the current reas- No. sessment. Quebec 14. Main exemptions/reliefs? • The following is a selected list of exemptions from 1. Title of Property Tax System? taxation. Based on actual value. The Act respecting municipal taxation a) Crown lands (R.S.Q., c. F-2.1) (“Act”) defines actual value as its exchange b) Cemeteries, burial sites value in the free and open market, the price most likely to be c) Churches paid at a sale by agreement (willing buyer, willing seller). The d) Public education institutions Act contains sections which are basically a resume of juris- e) Philanthropic organizations prudence on the matter. The municipal assessment roll serves f ) Public hospitals both the municipality and local school commission. g) Care homes 2. Type of property taxed along with brief description? h) Highways Immoveables within the meaning of article 900 of the Civil i) Municipal property Code of Québec and movables that are permanently at- j) Boy Scouts and Girl Guides tached to an immoveable. k) House of refuge 3. Person tax legally imposed on? l) Charitable institutes Owner (person who holds the right of ownership) of the m) Children’s aid societies land including the emphyteutic lessee and the occupant of n) Scientific or literary institutions land in the domain of the state (public land or immoveable). o) Battle sites p) Machinery: All machinery and equipment 4. Unit of assessment? used for manufacturing or farming purposes The greatest possible aggregate of immoveables, owned by q) Machinery used for producing electric power the same owner or group of owners in undivided ownership; r) Amusement rides used for a single primary purpose; can normally and in a s) Conservation land short term be transferred only as one whole.

A-73 5. Tax rate(s) set by? 18. Any significant recent changes and important issues? Set yearly by municipalities and school commissions. The No rates vary by categories of immoveables: non-residential, in- dustrial, six or more dwellings, serviced vacant land, agricul- Saskatchewan tural and the basic rate (used for residential). 1. Title of Property Tax System? Property Assessment and 6. Current tax rate? Taxation System Varies widely by municipalities and school commissions; the 2. Type of property taxed along with brief description? highest rate is always the non-residential rate which applies There are three pieces of provincial legislation that speak to to commercial properties. the assessment of property for municipal taxation purposes; 7. Frequency of adjustment of tax rate(s)? Each year. The Municipalities Act, The Cities Act, The Northern- Mu nicipalities Act, 2010. 8. Tax collected by? Municipalities and school commissions. All have identical assessment and taxation legislation. For 9. Assessor responsible for assessments? discussion purposes, The Municipalities Act (M Act) will be The Assessor is locally chosen by the municipality. It may be used as a reference. Municipalities and School Divisions are a regional county municipality or a local municipality. empowered to access the property tax system. Municipalities 10. Basis of valuation? administer the process on behalf of the school divisions. The Actual value. The land and building values will appear sepa- province sets the education tax mill rates. rately on the assessment roll. The Saskatchewan Assessment Management Agency 11. Frequency of general revaluations? (SAMA) is responsible for assessment policy as per The As- The Assessor files three (3) year rolls. The Minister can ex- sessment Management Agency Act (AMA Act). SAMA tend this period. The Assessor must check the accuracy of the reports to provincial government via the Ministry of Gov- data in his possession at least every nine (9) years. ernment Relations. The provincial Ministry of Government 12. Date of last general revaluation? It varies by municipali- Relations is directly responsible for property ; ties SAMA has no authority in this area. 13. Valuation date used for current assessment period? Real property is assessed and taxed (sections 2(e)(q)(dd)(nn), July 1st of the second fiscal year preceding the first of fiscal 193, 194, 194.1, 195, 199, 201). As well, some types of per- years for which the roll is made for the condition of the unit sonal property such as mine, oil and gas equipment used to of assessment, be it the physical condition, its economic and extract a mineral resource is deemed to be assessed and taxed legal condition as well as its physical surroundings, for the (sections 2(nn), 199). property market conditions and for the most likely use made 3. Person tax legally imposed on? of the unit on that date. As for sales, the information relating Typically the owner of the property. In some cases, such to transfers of ownership that have occurred before and after as government owned property and railway station ground the valuation date may be taken in account. leases, the tenant would be deemed liable for the taxes. 14. Main exemptions/reliefs? 4. Unit of assessment? Public property; property owned by religious institutions; Assessments are prepared on a parcel level, which is typically property used for education purposes; industrial machinery; the ISC (land titles) parcel. See section 2(dd) of the M Act. anti-pollution machinery linked to industrial production; 5. Tax rate(s) set by? mineral deposits; a railway; system of gas distribution; tele- Individual municipalities establish their own municipal mill communications system; immoveables relating to electrical rates and apply available tax tools. Tax tools and mill rate production, transmission or distribution. information can be found on the Ministry of Government 15. Initial appeal process? Relations website http://www.municipal.gov.sk.ca/Adminis- Application for Administrative Review can be filed with tration/Assessment/2013-revaluation/. the assessment authority (before May 1st of the first year of Provincial government sets the education mill rates which coming into force of a new triennial roll). are 2.67 for agricultural property, 5.03 for residential prop- 16. Independent body to determine unresolved appeals? erty, 8.28 for commercial/industrial property and 11.04 for Yes, after the Assessor communicates his/her position on the resource property (mines, oil and gas, pipelines). taxpayer’s application for administrative review, the taxpayer 6. Current tax rate? may appeal to an independent Tribunal (Administrative Tri- Refer to the above question. Municipal mill rate informa- bunal of Québec). tion is available on the Ministry’s website at: http://www. 17. Property tax revenue vs. other revenue? municipal.gov.sk.ca/Administration/Taxation-Assessment/ ± 70-75 % of municipal tax revenues. Mill-Rate-Survey.

A-74 7. Frequency of adjustment of tax rate(s)? 18. Any significant recent changes and important issues? Mill rates are reviewed on an annual basis. 2013 is a revaluation year in Saskatchewan. Saskatchewan’s 8. Tax collected by? economy experienced substantial economic growth since the The municipality administers the tax collection process for previous 2009 revaluation which is reflected in 2013 assess- both municipal and school taxes. The school taxes are then ments. The 2009 revaluation implemented the market valu- remitted to provincial government who then allocates the ation standard for residential and commercial property. For amounts to the school boards. 2013, valuation policies have stabilized. 9. Assessor responsible for assessments? Generally speaking, the assessment appraiser (qualified in- Special Administrative Region, dividual that performs valuations) prepares the assessments China on behalf of the municipal assessor. The municipal assessor 1. Title of Property Tax System? (employee of the municipality) is responsible for the assess- Property Tax is known as . Rates are ment roll (see sections 2(c), 205 of the M Act and sections 2c a tax on the occupation of property, and are charged at a (d)(e), 22 of the AMA Act). percentage of the rateable value of property. Properties in 10. Basis of valuation? all parts of the Hong Kong Special Administrative Region Market valuation standard for non-regulated property as- (HKSAR) are liable to the assessment of rates. As at the end sessments (residential and commercial property) and the of 2012, there are about 3.08 million domestic and non-do- regulated property assessment valuation standard for farm mestic properties. land, heavy industrial property, pipeline, railway roadway 2. Type of property taxed along with brief description? and resource production equipment for mines/oil/gas sites as Rates are charged on real property only. specified in sections 193, 194.1 of the M Act. 3. Person tax legally imposed on? 11. Frequency of general revaluations? Both the owner and the occupier are liable for rates. In prac- Saskatchewan has a four year revaluation cycle. tice, this will depend on the terms of the agreement between the owner and occupier of the property. In the absence of 12. Date of last general revaluation? 2013 for use to 2016. any agreement to the contrary, liability of rates rests with the 13. Valuation date used for current assessment period? occupier. January 1, 2011 4. Unit of assessment? 14. Main exemptions/reliefs? The unit of assessment for rating purposes is a “tenement”, Property tax exemptions are specified in sections 292-298 defined in the Rating Ordinance as “any land (including land of the M Act. Notable comments include typical religious covered with water) or any building, structure, or part thereof exemptions, government exemptions, as well as farm use which is held or occupied as a distinct or separate tenancy or buildings are exempt from taxation, an a exemption for new holding or under any licence”. economic development (section 298(5)). 5. Tax rate(s) set by? 15. Initial appeal process? The charging rate is prescribed annually by resolution of the The first level of appeal is the Board of Revision (BoR) as Legislative Council. outlined in sections 220 to 242 of the M Act. Property own- 6. Current tax rate? ers have the opportunity to appeal every year. Municipalities Rates is charged at 5% of the rateable value for the financial provide notice when the assessment roll is open for inspec- year of 2012/13. tion and appeal. In a non-revaluation year, you have 30 days to launch an appeal. In a revaluation year, you have 60 days 7. Frequency of adjustment of tax rate(s)? to appeal. The rates charge percentage is prescribed annually. The Ministry of Government Relations has additional mate- 8. Tax collected by? rials regarding the appeal process on their website at http:// Rates are collected by the Rating & Valuation Department www.municipal.gov.sk.ca/publications/ (RVD) of the HKSAR Government. The revenue forms part of the general revenue of the HKSAR Government. 16. Independent body to determine unresolved appeals? The second level of appeal is the Assessment Appeals Com- 9. Assessor responsible for assessments? mittee of Saskatchewan Municipal Board as per sections The assessments are provided by the RVD of the HKSAR 243-257 of the M Act. Questions regarding questions of law Government. can be taken to the Saskatchewan Court of Appeal. 10. Basis of valuation? 17. Property tax revenue vs. other revenue? This informa- The rateable value of a property is an estimate of its annual tion is not available at this time. open market rental value at a designated valuation reference

A-75 date made on the assumption that the property was then va- (h) properties owned by the Housing Authority and cant and to let. Neither restrictions on sale or letting nor the occupied for public purposes by the Government; financial status of the ratepayer can be taken into account. It (i) military land; also makes no difference to the rateable value whether the (j) certain resited village houses in the New property is owner-occupied or let. ­Territories; If a property is let, its rateable value may not necessarily be (k) properties occupied for domestic purposes in cot- the same as the rent passing, since there are many factors tage areas or temporary housing areas; affecting the rental level, such as commencement date of (l) properties of which the rateable value would not the rent and other terms of the tenancy agreement. Regard exceed the prescribed amount (the prescribed must be had to other open market rents agreed at or around amount was raised to $3,000 from 1 April 1997). the date of valuation, for similar properties in the locality, (ii) Exemption from payment of rates - a tenement is in- adjusted to reflect any differences in size, location, facilities, cluded in the valuation list but exemption from pay- standards of finish and management, etc. ment of the rates is granted by administrative means. 11. Frequency of general revaluations? The following classes of tenements are exempted from The frequency of general revaluations in Hong Kong is not payment of rates: specified in the Rating Ordinance. Under Section 11 of the (a) all tenements, or parts thereof, used wholly or Ordinance, the Chief Executive of the HKSAR may at any mainly for public religious worship, other than time direct the Commissioner of Rating and Valuation to those exempt from assessment. (This provision prepare a new list of rateable values, and at the same time gives exemption to non-purpose-built premises.) designate a date by reference to which the rateable values of (b) all tenements, or parts thereof, occupied for public the tenements shall be ascertained for the purpose of that purposes by or on behalf of the Government or the revaluation. Since 1999, general revaluations have been con- Financial Secretary Incorporated (FSI) other than ducted on an annual basis. those exempt from assessment. (This provision 12. Date of last general revaluation? The last general revalu- gives exemption to premises which are occupied ation (2012/13) took effect on 1 April 2012 but not owned by Government or FSI.) (c) all tenements, or parts thereof, held by the Govern- 13. Valuation date used for current assessment period? ment and occupied or to be occupied as dwellings 1 October 2011 is specified as the valuation date of the by public officers by virtue of their employment 2012/13 general revaluation. other than those exempt from assessment. (This 14. Main exemptions/reliefs? provision gives exemption to non-Government I. Exemptions owned premises.) The current provisions for exemption from liability for rates Moreover, Chief Executive of the HKSAR is authorized to take two forms: exempt any particular tenement or part of any particular ten- (i) Exemption from assessment to rates - no tenement ement (but not classes of tenements) from the payment of will appear in the valuation list. The tenements which rates. For example, the exemption of consular premises and are exempt from assessment to rates are: residences of accredited consular officers, as well as certain village houses situated outside the designated village areas in (a) agricultural land and buildings; the and occupied by an indigenous villager. (b) New Territories dwelling houses occupied in connec- tion with agricultural land or agricultural operations;­ II. Water Concession (c) New Territories village houses within designated Where there is no supply of fresh water from a Government areas, complying with the prescribed size, height water-main or the Government supply is unfiltered, the and type criteria; amount of rates payable will be reduced by 15% and 7.5% (d) tenements built for the purpose of public reli- respectively. For rating purposes, a supply is deemed to be gious worship and used wholly or mainly for such available even if a connection has not actually been made, if a ­purpose; tenement is within 180 metres of a Government water-main (e) cemeteries and crematoria; constructed to supply fresh/unfiltered water to the tenement. (f ) properties owned and occupied for public purposes by the Government, the Legislative Council Com- III. Rates Concession mission or the Financial Secretary ­Incorporated; In the financial year of 2012/13, rates concession is given to (g) properties owned by the Government and occu- offset the rates payable for the four quarters from April 2012 pied as dwellings by public officers by virtue of to March 2013, subject to a ceiling of $2,500 per quarter for their employment; each rateable tenement.

A-76 15. Initial appeal process? Ireland (i) Proposals 1. Title of Property Tax System? Following a general revaluation, a new valuation list is de- There are two forms of property tax in Ireland: clared by the Commissioner in the month of March and is (1) Non-domestic Rates (NDR). This applies to about made available for public inspection during the months of 170,000 non-domestic, business and industrial properties. April and May of the year the list comes into force. The new rateable values take effect on 1 April of the year in which the (2) Local Property Tax [LPT] was introduced in Ireland with valuation list is declared. the passing of the Finance (Local Property Tax) Act 2012 on 26 December 2012 and took effect for the year 2013. The Act The Rating Ordinance provides for any person who is ag- was subsequently amended on 13 March 2013 and is now grieved by an entry in the valuation list to serve a proposal in the Finance (Local Property Tax) Act 2012 (as amended). the specified form on the Commissioner for alteration of the Initially, LPT is charged in respect of the six-month period valuation list from 1 April of that year. Although the Ordi- 1 July 2013 to 31 December 2013 and will be charged on an nance requires that the proposal must be served within the annual basis after that. It is payable by the person who is the months of April and May, there is provision for the Com- liable person in relation to residential property on a specified missioner to accept proposals served on him at any time after date in each year (known as the ‘liability date’) and is based the declaration of the list in March and before 1 June in the on the self-assessed market value of a property on a specified same year. date in a 3-year valuation period (known as the ‘valuation Upon receiving a valid proposal, the Commissioner will re- date’) LPT applies to approximately 1.9m residential prop- view the assessment and may confirm or alter the entry in erties in the State. the valuation list. The decision must be issued before 1 De- 2. Type of property taxed along with brief description? cember immediately following the making of the proposal or (1) Subject to legally specified exceptions, non-domestic within such other time as the Chief Executive of the HK- Rates apply to commercial and industrial properties, includ- SAR may direct. ing real property and certain prescribed rights and easements (ii) Objections over property. Whenever the Commissioner serves a notice of an amend- (2) LPT applies to all residential properties in the State ment to a valuation list by way of a correction, a deletion or which are in use as, or which are suitable for use as, a dwell- an interim valuation (An interim valuation is made whenever ing. A property that is occupied as a dwelling is chargeable it is necessary to assess a new tenement or any tenement, regardless of the state of repair of the property. A property which is not already included in the valuation list.), an ag- that is not occupied is also chargeable as long as it is suitable grieved owner or occupier may, within 28 days, serve on the for use as a dwelling, i.e. it has been completed or is not in Commissioner a notice of objection in the specified form in such a bad state of repair that it is not capable of being occu- accordance with the Ordinance. pied. LPT applies to both privately-owned and State-owned residential properties. After considering a valid objection, the Commissioner shall confirm, vary or set aside the interim valuation, the deletion 3. Person tax legally imposed on? or the correction to the valuation list. He is required to is- (1) NDR: The occupier of the property is liable. Where the sue his decision on the objection within six months after the property is vacant, the owner/immediate lessor of the prop- expiration of the 28-day objection period. erty is liable. 16. Independent body to determine unresolved appeals? (2) LPT: A person who is dissatisfied with the Commissioner’s deci- For the most part, the liable person is the owner of the prop- sion in respect of a proposal or objection may appeal to the erty, regardless of whether he or she lives in the State or not. Hong Kong Lands Tribunal. The decision of the Tribunal is In certain circumstances, the owner of a property is displaced final on issues of valuation and findings of fact. Further -ap as the liable person by other categories of person such as: peals can only be on points of law to the Court of Appeal and • A landlord who has let the property under a lease then to the Court of Final Appeal. of less than 20 years 17. Property tax revenue vs. other revenue? • A tenant who has leased the property under a lease In the financial year of 2011-12, the revenue from rates was of at least 20 years. HK$9,722 million which represents 3.7% of all tax revenue • Persons with a long term right of residence who in HKSAR. are entitled to exclude any other person from the 18. Any significant recent changes and important issues? property. No • Holders of a life interest in the property.

A-77 • Personal representatives of a deceased owner. (2) LPT: There are two rates of 0.18% and 0.25%, depending • Trustees where the property is held in trust. on the value of the property. The rate of 0.18% is applied to properties valued at up to €1m. The amount of LPT due is 4. Unit of assessment? established by reference to valuation bands in that the rate is (1) NDR: The unit of assessment is the unit of occupation applied to the mid-point of the relevant valuation band. and is known as the “relevant property” [following the enact- ment of the Valuation Act, 2001 the term ‘relevant property’ LPT in Mid- replaced ‘hereditament’]. The valuation assessment is known Valuation 2014, 2015, point of as “rateable valuation”. This is based on the national Valu- band Valuation band € 2016 € Valuation ation Office estimating the “Net Annual Value” (NAV) of number (full year band € each rateable property and the NAVs are published in a “val- charge) uation list”. There are currently 88 rating authorities each of 01 0 to 100,000 50,000 90 which has its own valuation list. 02 100,001 to 150,000 125,000 225 A number of public utility valuations are valued globally and 03 150,001 to 200,000 175,000 315 entered on a ‘Central Valuation list’ which also shows the 04 200,001 to 250,000 225,000 405 amount of each global valuation apportioned to individual rating authorities. 05 250,001 to 300,000 275,000 495 06 300,001 to 350,000 325,000 585 (2) LPT: The unit of assessment is each chargeable residen- tial property. This is any building or structure (or part of a 07 350,001 to 400,000 375,000 675 building or structure) which is used as, or is suitable for use 08 400,001 to 450,000 425,000 765 as, a dwelling. It also includes any ancillary buildings and 09 450,001 to 500,000 475,000 855 structures such as sheds, outhouses and, garages and any 10 500,001 to 550,000 525,000 945 ancillary land, such as yards and gardens, of up to 0.4047 11 550,001 to 600,000 575,000 1,035 hectares (equivalent to one acre). Because a residential prop- 12 600,001 to 650,000 625,000 1,125 erty includes part of a building, individual apartments in an apartment block are a separate unit of assessment. However, 13 650,001 to 700,000 675,000 1,215 a building that contains accommodation units such as bedsits 14 700,001 to 750,000 725,000 1,305 or granny flats that are not capable of being sold indepen- 15 750,001 to 800,000 775,000 1,395 dently is treated as a single unit of assessment. 16 800,001 to 850,000 825,000 1,485 5. Tax rate(s) set by? 17 850,001 to 900,000 875,000 1,575 (1) NDR: The tax rate, known as Annual Rate on Valuation 18 900,001 to 950,000 925,000 1,665 (ARV), is set annually by the particular rating authority (Lo- 19 950,001 to 1,000,000 975,000 1,755 cal Authority) in which the property is located. (2) LPT: The basic tax rates of 0.18% and 0.25% are set by Properties valued at over €1m are assessed on their actual central government. From 1 January 2015, each local author- value with a rate of 0.18% applied to the first €1m and 0.25% ity will have the ability to increase or decrease the basic tax applied to the remainder. rates by up to 15% (known as the local adjustment factor) on As the initial chargeable period of 1 July 2013 to 31 Decem- properties situated within its functional area. ber 2013 is only six months, the usual annual charge is halved 6. Current tax rate? for the year 2013. (1) NDR: Setting the ARV is a reserved function of each rat- 7. Frequency of adjustment of tax rate(s)? ing authority. Accordingly, the rate varies from local author- (1) NDR: Tax rate (ARV) is set annually by the rating au- ity to local authority. Examples for 2013 include: thority (Local Authority). Rating Authority ARV for 2013 (2) LPT: While there are currently no plans to adjust the basic 0.18% or 0.25% rates, there is no statutory restriction Dun Laoghaire-Rathdown 0.1666 on the frequency of adjustment. However, as outlined in 5 South Dublin 0.1620 above, from 1 January 2015 each local authority will have the Fingal 0.1440 ability to increase or decrease the basic rates by up to 15% in The amount of NDR payable by a ratepayer is calculated each year. by multiplying the NAV determined by the Valuation Of- 8. Tax collected by? fice by the ARV set annually by the rating authority (Local (1) NDR: Collected by each individual rating authority (Lo- ­Authority). cal Authority).

A-78 (2) LPT: Office of the Revenue Commissioners, Dublin 14. Main exemptions/reliefs? Castle, Dublin 2, Ireland on behalf of central government. (1) NDR: Various classes of non-rateable property are set out 9. Assessor responsible for assessments? in legislation. These include agricultural land, land developed (1) NDR: Assessments are conducted by the Valuation Of- for horticulture, forestry or sport, together with farm buildings fice, the State organisation responsible for conducting such and domestic properties. Buildings used exclusively for public assessments. worship, not-for profit hospitals, educational institutions, art galleries, museums, libraries, parks and national monuments are (2) LPT: There is no central assessor that is responsible for generally exempt. Lighthouses, community halls and certain assessments. LPT is a self-assessed tax, i.e. the liable person properties occupied by charitable organisations are also exempt. himself or herself determines the value of his or her property Local authorities can grant discretionary relief in some cases. and determines the amount of LPT payable by reference to At present, there is no “transitional relief ” available to phase the valuation bands at 6 above, or the actual value in the case in the impact of revaluation. The Annual Rate on Valuation of properties valued at >€1m. (ARV) is applied to all rateable properties in a rating author- 10. Basis of valuation? ity area; there is no distinct tax rate for small businesses. (1) NDR: The basis of valuation is known as “Net Annual (2) LPT: The following residential properties are exempt Value” (NAV). This is defined in legislation and equates to from LPT: the annual rental value, subject to a number of statutory as- sumptions. • Properties constructed and owned by a builder or a (2) LPT: The basis of valuation is the price that a property property developer that are treated as trading stock would be expected to sell for in the open market as estab- for income tax purposes, that remain unsold and lished by the liable person on a specified date (known as the that have not yet been used as a residence. ‘valuation date’). The valuation date for the initial 3½ year • New and previously unused properties that are valuation period, covering 1 July 2013 to 31 December 2016, purchased from a builder or a property developer is 1 May 2013. Thereafter, the valuation date will be 1 No- between 1 January 2013 and 31 October 2016 are vember in the year preceding each three-year valuation pe- exempt until 2017. riod, i.e. 1 November 2016 for the valuation period 2017 to • Properties purchased by a first time buyer between 2019. The open market sales price is hypothetical in the sense 1 January 2013 and 31 December 2013 and used that that any actual restrictions on the sale of the encum- as the first time buyer’s sole or main residence are bered fee simple of a property cannot be taken into account. exempt until 2017. • Properties in specified unfinished housing estates. 11. Frequency of general revaluations? • Properties owned by a charity or a public body and (1) NDR: National revaluation programme currently un- used to provide accommodation and support for derway on a rolling basis; each rating authority is re-valued people with special needs. independently of other rating authorities. Thereafter, revalu- • Nursing Homes. ations will occur not less than five years and not more than • Properties that have been vacated by individuals ten years. who cannot continue to live there because of a long (2) LPT – A valuation submitted by a liable person for the term mental or physical infirmity, provided that the first valuation date of 1 May 2013 will remain in place for the property remains vacant.. valuation period 1 July 2013 to 31 December 2016. Thereafter, • Mobile homes, vehicles or vessels and other prop- revaluations will be submitted every 3 years with the next valu- erties/structures that are not permanently attached ation date being 1 November 2016 for the period 2017 - 2019. to the ground. 12. Date of last general revaluation? • Properties fully subject to commercial rates. (1) NDR: First modern national revaluation currently un- • Properties that have a tax exemption under the Vi- derway. enna Conventions of 1921 (Diplomatic Relations) (2) LPT: 1 May 2013 [also first year of valuation] and 1923 (Consular Relations). 13. Valuation date used for current assessment period? • Properties that have been certified by a competent (1) NDR: The valuation date is set by statutory order as the person such as an engineer as having a significant revaluation of each rating authority takes place. It precedes level of pyrite-induced damage have a temporary the date of the order. exemption of approximately three years. (2) LPT: The first valuation date is 1 May 2013 for the -pe • Properties used by charitable bodies as residential riod 1 July 2013 to 31 December 2016. Thereafter, it will accommodation in connection with recreational ac- be 1 November preceding each subsequent 3-year valuation tivities that are an integral part of the body’s chari- period, i.e. 1 November 2016 for the period 2017 to 2019. table purpose, e.g. guiding and scouting activities.

A-79 • Properties purchased, built or adapted because of Under the Valuation Act 2001 there is also a right of internal their suitability for, or to make them suitable for, appeal to the Commissioner of Valuation, before the appeal occupation by permanently and totally incapaci- to the Tribunal. However, the Government has published tated individuals as their sole or main residence. legislative proposals in the Valuation (Amendment) (No.2) The chargeable value of a property that has been adapted to Bill 2012 which would result in this appeal being removed. make it suitable for occupation by a disabled individual may This is one of a number of legislative proposals set out in the be reduced by the amount of the value that is attributable to Bill, which is currently making its way through the Oireach- the adaptation work where the adaptation work has had the tas (Irish Parliament). effect of moving the chargeable value of the adapted property (2) LPT: into a higher valuation band. Individuals may appeal to the Revenue Commissioners where they do not consider themselves to be liable persons. Properties that are owned by a local authority or an approved There are essentially two reasons why this may happen. private body providing social housing are placed in the low- Firstly, an individual may not accept that he or she has the est valuation band regardless of their actual chargeable value relevant interest (such as ownership) in a property. Secondly, for the first valuation period 1 July 2013 to 31 December an individual may consider that the property is not charge- 2016. able to LPT because it is not occupied and not suitable for Certain liable persons are eligible to defer payment of LPT use as a dwelling. A determination made by the Revenue until the ownership of a property changes or the conditions Commissioners against an individual may be appealed to an for the deferral cease to be met. Deferral is subject to the independent tribunal. payment of simple interest calculated at the daily rate of 0.011% for each day that liability is deferred. These are: 16. Independent body to determine unresolved appeals? (1) NDR: Yes, unresolved valuations may be appealed to the • Individuals who have gross annual income of Valuation Tribunal, an independent body set up to settle dis- €15,000 and couples who have gross annual in- puted valuations between the Commissioner of Valuation come of €25,000. The corresponding gross annual and the ratepayers or local authorities. To be valid, an appeal income thresholds for eligibility for a 50% defer- to the Valuation Tribunal must be made within 28 days from ral are €25,000 and €35,000, respectively. These the date of publication of the Valuation List. The appeal must thresholds may be increased by 80% of mortgage be in writing; it must specify the grounds of appeal and must interest payments in the case of properties occu- be accompanied by the appropriate fee. For more informa- pied as a liable person’s sole or main residence and tion on the Valuation Tribunal visit www.valuation-trib.ie. that are subject to a mortgage. The Tribunal’s decision on quantum is final; however, there is • The personal representatives of a deceased liable a further appeal on a point of law to the High and Supreme person are eligible to a maximum deferral period Court. of three years. (2) LPT: A taxpayer has the right to appeal to the Appeal • Insolvent individuals who have entered into a Commissioners against the following decisions of the Rev- specified statutory insolvency arrangement for the enue Commissioners: duration of the arrangement. • A refusal of a claim for repayment. 15. Initial appeal process? • A determination that a person is a liable person. (1) NDR: There are several opportunities to challenge or ap- • An assessment to LPT. peal a valuation. Before a valuation is finalised, the ratepayer • A determination that a liable person is not eligible receives a “Proposed Valuation Certificate” from the Valu- for a deferral of LPT. ation Office. The ratepayer may challenge this by making An appeal against an assessment may encompass any dispute statutory “representations” to the valuation manager. This is between the person and the Revenue Commissioners regard- an informal stage prior to the more formal appeal processes ing the interpretation of the legislation, the ownership of the which follows. There is no fee payable for this challenge. The property, whether the property is a liable property, the valua- ratepayer is notified of the outcome of this, is provided with a tion of the property and the liability of the person. final assessment and is informed of the appeal options. The Appeal Commissioners is an independent appeals tribu- If the ratepayer is dissatisfied with the outcome of the con- nal. A taxpayer who is aggrieved by a decision of the Appeal sideration of representations, there is a right of appeal to Commissioners has a further right of appeal to the Circuit the Valuation Tribunal, after the publication of the Valua- Court. An appeal to the Circuit Court is a de novo appeal. tion List. The Tribunal is an independent body established Both the taxpayer and the Revenue Commissioners have a to resolve disputed valuations between the Valuation Office, right of appeal to the High Court on a point of law from the ratepayers and local authorities. Appeal Commissioners and the Circuit Court.

A-80 17. Property tax revenue vs. other revenue? primarily based on a certificate of title and other instruments (1) NDR amounts in total to approximately €1.35 billion of ownership (Deed, proclamation, gazette notice, etc). nationally, each year. This has been estimated as represent- 5. Tax rate(s) set by? ing approximately 32% of the entire annual funding require- Individual Local Authorities in accordance with the Local ments of local authorities [based on 2013 funding data]. The Government (Rating) Act 2002. NZ has 80 Local Authori- entire national tax take for Ireland in 2013 is estimated at ties (68 Territorial Authorities and 12 Regional Authorities) €38.018 billion. all of whom have the power to set rates. (2) LPT: 2013 is the first year of LPT. The proportion of all tax revenue [including LPT] represented 6. Current tax rate? by LPT alone is 0.7% in 2013 based on an estimated budgeted Varies for each of the 68 Territorial Authorities & 12 Re- yield of €250m for LPT and €38.018bn for all tax revenues. gional Authorities – they set a strike rate in the dollar of rateable value each year to fund budget requirements. Some 18. Any significant recent changes and important issues? rate substantially on rateable value whilst others use a com- (1) NDR: The Valuation (Amendment) (No.2) Bill 2012, bination of rateable values and targeted rates/uniform an- which is currently making its way through the Oireachtas nual charges. There is no banding of rateable values and rat- (Irish Parliament), contains a number of important legisla- ing policy can be varied in consultation with the ratepayer tive proposals which are intended to accelerate and stream- ­community. line how national revaluation programmes are carried out in Ireland. The proposals include provision for: 7. Frequency of adjustment of tax rate(s)? • elements of self-assessment of valuations by rate- Yearly depending on budget and individual council rates payers policy. All properties are revalued at least once every three • engaging external contractors to undertake valua- years and new rates struck on the results of the revaluation. tions 8. Tax collected by? • streamlining of the current appeals process Local authorities (councils) collect for their district – some- • wider use of statistical analysis tools and processes times they also collect on behalf of regional councils • a number of technical adjustments to the legisla- tion to improve operations 9. Assessor responsible for assessments? (2) LPT: In 2012 the Irish Government introduced a €100 Territorial authorities (councils) – rating valuations have to Household Charge on each residential property situated be completed under the authority of a registered valuer and within the State. This charge was abolished in 2013 and was councils can elect to do this in house or contract with an ex- replaced by the Local Property Tax. From 1 July 2013 the ternal valuer. Currently Quotable Value assess approximately Revenue Commissioners took over responsibility for collect- 90% of rating valuations in NZ. Regional councils use rate- ing any outstanding Household Charge liabilities. From that able values from Territorial authorities district valuation rolls. date, any outstanding liabilities (including late payment pen- 10. Basis of valuation? alties) increased to €200 and are included as part of the LPT Open market sale price for both capital and land value as at liability for the property. one effective date per territorial authority once every three years. Based on a freehold tenure assumption, actual condi- tion, highest and best (not actual) use, disregard actual leases. New Zealand 11. Frequency of general revaluations? 1. Title of Property Tax System? Once every three years. Rating valuations can be updated There is one system in New Zealand – Local government during the three year period to reflect new improvements or rates – applies to 1.9 million rating units which are recorded subdivisions. on each of the 68 Territorial Authority district valuation 12. Date of last general revaluation? rolls. No land tax in NZ. Varies for each of the 68 territorial authorities – roughly a 2. Type of property taxed along with brief description? third of them revalue each year so all done in a three year Real property only – includes network Utility assets. cycle. 3. Person tax legally imposed on? 13. Valuation date used for current assessment period? The owner. NZ moved to away from occupier and onto Effective date between 1 August and 1 October – revalue owner liability in 2002. every three years. 4. Unit of assessment? 14. Main exemptions/reliefs? Rating unit – legally defined and supported by prescriptive All properties are valued on the district valuation roll in ac- Rules defining what constitutes a rating unit. Rating unit cordance with the rating Valuations Act 1998 irrespective of

A-81 their rateable status. The Local Government (Rating) Act 3. Person tax legally imposed on? 2002 Schedule 1 identifies a number of property types that The following definition of “owner” is applicable for property are non rateable. National Parks, civic use heritage and rec- rates: reation buildings, State Schools (not private ones), Religious a) in relation to a property referred to in paragraph (a) of premises, some types of Maori Freehold Land, Machinery, the definition of “property”, means a person in whose name Roads, Airport passenger movement and runway areas, Par- ownership of the property is registered; liament, common marine and coastal areas. b) in relation to a right referred to in paragraph (b) of the 15. Initial appeal process? definition of “property”, means a person in whose name the Full objection rights to revaluation assessment within 30 right is registered; working days of issue of public notice. Ratepayers can ap- c) in relation to a right referred to in paragraph peal/object to the territorial authority who undertake a re- (c) of the definition of “property”, means a person in whose view – can use the same registered valuer who did the revalu- name the right is registered or to whom it was granted in ation. Appeals based on comparable sales. terms of legislation; or Rating valuations updated during the currency of the roll (e.g. d) in relation to public service infrastructure referred to in the three years between revaluations) have a 20 working day pe- paragraph (d) of the definition of “property”, means the or- riod to object and receive a review from the territorial authority. gan of state which owns or controls that public service in- These appeals are based on comparable roll parcels not sales. frastructure as envisaged in the definition of “publicly con- 16. Independent body to determine unresolved appeals? trolled”, provided that a person mentioned below may for Appeal rights on all objections to the Land Valuation Tribu- the purposes of this Act be regarded by a municipality as the nal (further appeal on points of law to a higher court) owner of a property in the following cases: 17. Property tax revenue vs. other revenue? i) A trustee, in the case of a property in a trust excluding state Reported to be a 99% rates collection – non payers can be trust land; subject to a forced rating sale unless it’s Maori Freehold ii) an executor or administrator, in the case of a property in Land which is protected. a deceased estate; iii) a trustee or liquidator, in the case of a property in an in- 18. Any significant recent changes and important issues? solvent estate or in liquidation; Tax collected goes directly to each local authority and no im- iv) a judicial manager, in the case of a property in the estate mediate plans to change this. A review of funding mecha- of a person under judicial management; nisms for local government has been mooted but no substan- v) a curator, in the case of a property in the estate of a person tive developments as yet. under curatorship; vi) a person in whose name a or other personal ser- South Africa vitude is registered, in the case of a property that is subject to 1. Title of Property Tax System? a usufruct or other personal servitude; There is one system to levy rates in South Africa and the vii) a lessee, in the case of a property that is registered in term used is Property Rates. The enabling legislation is the the name of a municipality and is leased by it; or a buyer, in Local Government: Municipal Property Rates ACT, (Act the case of a property that was sold by a municipality and of No 6 of 2004), also referred to as the MPRA. which possession was given to the buyer pending registration 2. Type of property taxed along with brief description? of ownership in the name of the buyer; The following definition of “property” is applicable for prop- Further a municipality may also determine categories of erty rates: owners and criteria for the purposes of rates relief, e.g. Pen- a) immovable property registered in the name of a person, sioners in terms of adopted rates policy. including, in the case of a sectional title scheme, a sectional 4. Unit of assessment? title unit registered in the name of a person; This is directly linked to the definition of property however b) a right registered against immovable property in the name the legislation also caters for multiple purpose use properties of a person, excluding a mortgage bond registered against which can be rated as a dominant use category of property the property; or as a specified multiple purpose category. In the applica- c) a land tenure right registered in the name of a person or tion of dominant use the category of property would be the granted to a person in terms of legislation; dominant use based on the building development size, e.g. d) public service infrastructure (Note - which is further defined) if a property has two uses business and residential, depend- Further each property is required to be assigned a category ing on the policy if more residential than business it would of property determined by the municipality on which the ad- attract the residential category “rate” and if the reverse more opted “rate” will be levied in terms of rates policy. business it would attract the business “rate”.

A-82 In the application of multiple purposes the value of the prop- municipality and is responsible for the compilation and cer- erty would be apportioned based on each different use type tification of a valuation roll. and a category of property determined for each apportioned 10. Basis of valuation? value and a rate levied. Therefore each category of property The basis of valuation is the market value of a property sub- on a property would attract the applicable “rate”. ject to specified areas that must be disregarded, such as im- Values and rates can also be split based on a rates policy deci- moveable equipment, any unregistered lease, for agricultural sion, where a portion of a property may be classified as non property the value of any annual crops or growing timber rateable and rates levied accordingly. that has not been harvested at the date of valuation. Property 5. Tax rate(s) set by? must be valued in accordance with generally recognised valu- The tax rate(s) are set by each municipality intending to levy ation practices, methods and standards and the provisions of rates on property and the power to levy rates is through the the MPRA. Constitution, the Municipal Property Rates ACT (MPRA) 11. Frequency of general revaluations? and a municipality’s adopted rates policy. A tax rate is set A valuation roll is valid for a maximum of 4 years so the cycle against a category of property in terms of the MPRA and as of revaluations has mostly been 4 years, however a roll can adopted by the municipality. be extended for a further 1 year by the MEC (Member of 6. Current tax rate? the Executive Council) for local government of the province Tax rates are the responsibility of the municipality and there- under certain circumstances. If a municipality chooses it may fore differ between them, and are also dependent on the re- revalue within the 4 year cycle. valuation cycle. Therefore do not have the conclusive tax rate 12. Date of last general revaluation? stats on highest, lowest and average rates for each category The date of valuation and the effective date of valuation rolls of property. vary by municipality mainly due to the initial phase-in of A property or property tax rate is determined at a local the legislation (MPRA) when it was promulgated in 2005. government level, following an obligatory public participa- In terms of the MPRA the first rolls at market value were tion process. Due to the provision that local government may implemented in July 2007 and were compiled over a three determine the tax rate levied, rates per category of property year period up to July 2009. SA is now well into the next can vary significantly and is also influenced by the category revaluation cycle no. 2 and only rolls that have been extended of property profile mix. by the MEC for a further year are being prepared for imple- mentation in July 2014. Properties used for agricultural, public service infrastructure and public benefit organisation purposes have a prescribed 13. Valuation date used for current assessment period? maximum net tariff ratio to the residential tariffs as follows: The date of valuation is set by the municipality and these may Residential 1:0.25 (Agricultural/PSI /PBO). differ depending on the revaluation cycle. In terms of legis- Typically Commercial/Industrial property is 1.5 to 2 times lation the valuation date may not be more than 12 months higher than the residential tariff and vacant land may be before the date of implementation. The current practice is charged a punitive tariff to encourage development, produc- for valuation dates to be set at 1 July and then implemented tive agriculture and to discourage speculation. the following year from the start of the financial year, being 1 July. Further the delivery of the roll is governed by regula- 7. Frequency of adjustment of tax rate(s)? tion which specifies that a certified valuation roll must be The tax rate(s) are reviewed annually and may be adjusted delivered and handed to the municipality by the 31 January through community participation and by adoption of the preceding the date of implementation. municipality. 14. Main exemptions/reliefs? 8. Tax collected by? Some of the typical exemptions / relief are accounted for in Local government – municipal collection. the “rate” ratio set between residential and agricultural / pub- 9. Assessor responsible for assessments? lic service infrastructure / public benefit organisation used An Assessor is termed municipal valuer and assessments property, and against a category of property based on actual termed valuations. Valuations for property rates are currently use such as a worship church property used as a church. Set conducted at a local government level and may be through and council adopted reductions in the market value of a cat- an internal municipal valuation structure and/or contracted egory of property is also an area of relief granted. to the private sector. Further rates relief may also be granted to an owner such A municipal valuer, who must be registered with the statu- as pensioners / senior citizens, beneficiaries as tory controlling body, the South African Council for the defined by legislation, child headed households, Disability Property Valuers Profession (SACPVP), is appointed by a Grantees / Medically Boarded Persons, Indigent Owners,

A-83 property affected by a disaster, owners of agricultural proper- (b) on any part of the sea-shore as defined in the Sea-shore ties who are bona fide farmers, etc. Part extract of the legisla- Act, 1935 (Act 21 of 1935); tion as worded below. (c) on any part of the territorial waters of the Republic as The enabling MPRA legislation provides for the following, determined in terms of the Maritime Zones Act, 1994 (Act which can be added to, enhanced or clarified at a municipal 15 of 1994); level: (d) on any islands of which the state is the owner, including the Prince Edward Islands referred to in the Prince Edward “A municipality may in terms of criteria set out in its rates Islands Act, 1948 (Act 43 of 1948); policy: (e) on those parts of a special nature reserve, national park or (a) exempt a specific category of owners of properties, or the nature reserve within the meaning of the National Environ- owners of a specific category of properties, from payment of mental Management: Protected Areas Act, 2003 (Act 57 of a rate levied on their property; or 2003), or of a national botanical garden within the meaning (b) grant to a specific category of owners of properties, or to of the National Environmental Management: Biodiversity the owners of a specific category of properties, a rebate on or Act, 2004 (Act 10 of 2004), which are not developed or used a reduction in the rates payable in respect of their properties. for commercial, business, agricultural or residential purposes; (2) When granting in terms of subsection (1) exemptions, [Para. (e) substituted by s. 29 of Act 19 of 2008.] rebates or reductions in respect of owners of categories of (f ) on within the meaning of paragraph (b) of properties, a municipality may determine such categories in the definition of ‘property’ in section 1; accordance with section 8 (2), and when granting exemp- (g) on a property belonging to a land reform beneficiary or tions, rebates or reductions in respect of categories of owners his or her heirs, provided that this exclusion lapses ten years of properties, such categories may include- from the date on which such beneficiary’s title was registered (a) indigent owners; in the office of the Registrar of ; (b) owners dependent on pensions or social grants for their (h) on the first R15 000 of the market value of a property as- livelihood; signed in the valuation roll or supplementary valuation roll of (c) owners temporarily without income; a municipality to a category determined by the municipality- (d) owners of property situated within an area affected by- (i) for residential properties; or (i) a disaster within the meaning of the Disaster Manage- (ii) for properties used for multiple purposes, provided one ment Act, 2002 (Act 57 of 2002); or or more components of the property are used for residential (ii) any other serious adverse social or economic conditions; purposes; or (e) owners of residential properties with a market value lower (i) on a property registered in the name of and used primarily than an amount determined by the municipality; or as a place of public worship by a religious community, includ- (f ) owners of agricultural properties who are bona fide farmers. ing an official residence registered in the name of that commu- (3) The municipal manager must annually table in the coun- nity which is occupied by an office-bearer of that community cil of the municipality a- who officiates at services at that place of worship.” (a) list of all exemptions, rebates and reductions granted by 15. Initial appeal process? the municipality in terms of subsection (1) during the previ- In SA, there is an initial objection process and then an appeal ous financial year; and process. Once the roll is delivered a notice is required to be (b) statement reflecting the income for the municipality published in a specified manner, inviting every person who foregone during the previous financial year by way of- wishes to lodge an objection in respect to any matter in, or (i) such exemptions, rebates and reductions; omitted from, the roll to do so within a prescribed manner (ii) exclusions referred to in section 17 (1) (a), (e), (g), (h) and within a stated period, which must not be less than 30 and (i); and days. An objection is lodged with the municipality and for- (iii) the phasing- in discount granted in terms of section 21. warded to the municipal valuer for processing. (4) Projections regarding revenue to be forgone for a finan- cial year in relation to subsection (3) An objection is then considered by the municipal valuer and (b) must be reflected in the municipality’s annual budget for a notification of the decision outcome is sent to the objec- that year as- tor. If the objector is not satisfied with the municipal valuer’s (a) income on the revenue side; and decision, the objector has a right of lodging an appeal to the (b) expenditure on the expenditure side. municipality. 17 Other impermissible rates 16. Independent body to determine unresolved appeals? A municipality may not levy a rate- An independent valuation appeal board is established by the (a) on the first 30% of the market value of public service province to hear and decide on appeals lodged and to review infrastructure; the decision of the municipal valuer in objections, where the

A-84 value has been changed by more than 10% upwards or down- The valuation band (see below) for each prop- wards. erty is published in a “valuation list”. 17. Property tax revenue vs. other revenue? 5. Tax rate(s) set by? N/A a) Business Rates – tax rate set by national (i.e. 18. Any significant recent changes and important issues? central) government. There are planned legislative amendments to the municipal b) Council Tax – there is no set tax rate for coun- property rates ACT however these are not yet promulgated cil tax; the amount of tax is determined by so may be premature to mention at this stage as they could which of 8 value “bands” the property falls into change. Some challenges however are the updates to the (see below). The amount of tax is set for each valuation roll by supplementary roll batch updates which is band by each separate local government. regarded as cumbersome and not efficient. There have been 6. Current tax rate? some motivations to alter to a more routine process which a) Business Rates - 45.8% (45.0% for small busi- can be undertaken daily and on the fly. nesses) for 2012/13 fiscal year. Quality of the roll and data is also an issue that is often b) Council Tax – as stated in Q5 above, there is no raised from the ratepayer and oversight /quality control of- set tax rate for council tax; the amount of tax ficers and which is compounded as there are no recognised is determined by which of 8 value “bands” the South African Mass Valuation Standards. This is being re- property falls into and the amount of tax set viewed however by the valuer industry and participants and for each band by local government. Legislation hopefully standards will be formulated from considering controls the proportion of tax payable between other international benchmark standards and modified for the different bands. See table below: the SA context. Valuation Band Range of Values United Kingdom A Up to and including £40,000 England B £40,001 - £52,000 1. Title of Property Tax System? C £52,001 - £68,000 There are two property tax systems in England: D £68,001 - £88,000 a) Business Rates (or National Non-Domestic E £88,001 - £120,000 Rates – NNDR system). This tax applies to all F £120.001 - £160,000 1.8 million non-domestic properties. G £160,001 - £320,000 b) Council Tax. This tax applies to all 23 million domestic (i.e. residential) properties. H More than £320,000 2. Type of property taxed along with brief description? 7. Frequency of adjustment of tax rate(s)? a) Business Rates – real property, but also some a) Business Rates – tax rate revised annually; any rights over property (e.g. advertising rights). increase limited to change in inflation (RPI). b) Council Tax – real property. b) Council Tax – tax payable for all bands (based 3. Person tax legally imposed on? on the tax for a Band D property) are revised a) Business Rates – the occupier; but the tax is annually. paid by the owner if the property is empty. b) Council Tax – the resident; this is usually the 8. Tax collected by? owner as most residential properties in the UK a) Business Rates – local government (apart from are owner-occupied, but it would be the tenant rates on central list properties; these are col- in the case of rented properties. The owner pays lected by central government), but all tax is the property element (75%) of this tax if the paid into the central “pool” for redistribution to property is unoccupied. local government. b) Council Tax – local government. 4. Unit of assessment? a) Business Rates – the unit of occupation (called 9. Assessor responsible for assessments? a hereditament) is the normal unit of assess- a) Business Rates – valuation assessments are pro- ment. The valuation assessment is called “rate- vided by the Valuation Office Agency (VOA); able value” and is published in a “rating list”. the VOA is a central government agency. b) Council Tax - the unit of occupation (called a b) Council Tax – property bandings are provided hereditament) is the normal unit of assessment. by the VOA.

A-85 10. Basis of valuation? has been a “material change of circumstances” a) Business Rates – rateable value is an estimate that has reduced the value of the property. of the open market annual rental value of the b) Council Tax – taxpayers may appeal to the local property (based on a number of statutory valu- government if they consider they are entitled to ation assumptions, e.g. that the property is va- an exemption or relief. Taxpayers may appeal to cant and to let, is in reasonable condition, etc) the VOA if they wish to challenge the banding b) Council Tax – the value banding is based on of a new property or they consider there has the open market sale price of the property been a material reduction in the value of the (based on a number of statutory assumptions, property due to changes to the property or its e.g. that the property is freehold, is in reason- locality. able condition, the valuation reflects existing 16. Independent body to determine unresolved appeals? use, etc.) a) Business Rates – yes; the Valuation Tribunal 11. Frequency of general revaluations? (further appeals lie to the Upper Tribunal of a) Business Rates – every 5 years. the Lands Chamber). b) Council Tax – no general revaluation since the b) Council Tax – yes; the Valuation Tribunal (fur- council tax system was introduced in 1993. ther appeal is only allowed on a point of law). 12. Date of last general revaluation? 17. Property tax revenue vs. other revenue? a) Business Rates – 2010. a) Business Rates - Local authorities in England b) Council Tax – no general revaluation since the collected £20.8 billion in non-domestic rates council tax system was introduced in 1993. by the end of March 2012 out of a total of 13. Valuation date used for current assessment period? £21.3 billion collectable (national average in- a) Business Rates – April 2008 year collection rate for non-domestic rates in b) Council Tax – April 1991 England = 97.8%). 14. Main exemptions/reliefs? b) Council Tax - Local authorities in England col- a) Business Rates – agricultural land and build- lected £22.1 billion in council taxes by the end ings are exempt along with fish farms, places of of March 2012 out of a total of £22.7 billion worship, public parks, highways, etc. There are collectable (national average in-year collection also a number of reliefs available for different rate for council tax in England = 97.3%). types of property including those occupied by According to the latest Budget (March 2012), the to- charities, rural shops, etc; local authorities can tal tax revenue for the UK was £550billion. The esti- grant discretionary relief in some cases. There mates for the annual revenue of the two main property is also “transitional relief ” available to phase in taxes in 2012 is approximately £50billion meaning the impact of revaluations – this affects both that property taxes contribution nearly 10% of total increases and decreases in liability. There is a tax revenue. lower tax rate for small businesses. b) Council Tax – there are quite a number of ex- To set local government expenditure and income in empt dwellings including those undergoing context, local government accounts for about 24% of major repair works to make them habitable, the UK public sector’s expenditure as a whole. buildings unoccupied for 6 months, those oc- In England, local authorities’ total expenditure was cupied by full time students, etc. £172bn in 2010-11. After deducting non-grant in- The Council Tax bill assumes that there are two come, the overall cost to the central and local taxpayer adults living in a dwelling. If only one adult lives of local authority services was around £146bn (£2,799 there (as their main home), the bill is reduced by per head) in 2010-11. Based on published statistics, one quarter (25%). 55% of revenue expenditure was funded from govern- There is also council tax benefit available for peo- ment grant in 2010-11, 25% from local taxes (mainly ple on low incomes. council tax) and 20% from redistributed non-domestic rates. So property tax contributes approximately 45% 15. Initial appeal process? of local government’s overall revenue. a) Business Rates – taxpayers may apply to the local government if they consider they are en- 18. Any significant recent changes and important issues? titled to an exemption or relief. Taxpayers may a) Business Rates – there are significant changes appeal to the VOA if they wish to challenge the planned to allow local government to retain a valuation of a property or they consider there larger proportion of the tax they collect. At pres-

A-86 ent, all the tax collected is paid into a central pool b) Non-Domestic Rates - the rate is set partly by central operated by a central government department government (the regional rate) and partly by local district (the Department for Communities and Local council in which the hereditament is located (the district Government) and redistributed to local govern- rate). ments by means of a formula which is supposed 6. Current tax rate? to reflect local needs and resources. Next year See Appendix A below which sets out the Regional Rate, this will change so local governments will retain District Rate and Total Rate for both domestic and non- 50% of the tax they collect with the remaining domestic properties across each of the current 26 district tax collected being redistributed through a com- councils in Northern Ireland plex system of “tariffs” and “top ups”, “claw back” and “levy”. However, this should not affect tax- 7. Frequency of adjustment of tax rate(s)? payers directly as this change will not impact on a) Domestic Rates – tax rate revised annually, by both central the amount of tax they pay. government and local council. b) Non-Domestic Rates – tax rate revised annually, by both b) Council Tax – no significant changes. How- central government and local council. ever, council tax is a very unpopular property tax and attracts considerable adverse media 8. Tax collected by? coverage and is very sensitive politically. The a) Domestic Rates – Land and Property Services (LPS), political sensitivity is why planned revaluations Revenue and Benefits Directorate. have been cancelled. b) Non-Domestic Rates - Land & Property Services (LPS), Revenue and Benefits Directorate. Northern Ireland 9. Assessor responsible for assessments? 1. Property Tax System? a) Domestic Rates – valuation assessments are provided by There are two property tax systems in Northern Ireland Land & Property Services (LPS), Mapping and Valuation a) Domestic Rates. This applies to all 775,000 do- Directorate. mestic properties b) Non-Domestic Rates - valuation assessments are provided b) Non-Domestic Rates. This applies to all 73,000 by Land & Property Services (LPS), Mapping and Valuation non-domestic properties. Directorate. 2. Type of property taxed along with brief description? 10. Basis of Valuation? a) Domestic Rates – real property a) Domestic Rates – the capital value is based upon the b) Non-Domestic Rates – real property, but also some rights amount which, subject to certain assumptions, the heredita- over property (e.g. advertising rights. ment might reasonably be expected to realise if it had been sold on the open market by a willing seller at the relevant 3. Person tax legally imposed on? capital valuation date. a) Domestic Rates – the resident; this is usually the owner b) Non-Domestic Rates – rateable value is an estimate of as most residential properties in Northern Ireland are owner- the open market annual rental value of the property (based occupied, but it would be the tenant in the case of rented prop- on a number of statutory assumptions, e.g. that the property erties. The owner pays 100% of the tax if the property is vacant. is vacant and to let, the tenant is responsible for repairs and b) Non-Domestic Rates – the occupier, but the tax is paid by insurance and the date of valuation is as set out in statute). the owner if the property is vacant (at 50% of the occupied tax liability). 11. Frequency of general revaluations? There is no statutory provision governing the frequency of 4. Unit of Assessment? revaluations. The timing of a revaluation is a matter for the a) Domestic Rates – the unit of occupation (called a her- local Minister of Finance. As such the pattern of revaluations editament) is the normal unit of assessment. The valuation in Northern Ireland has been somewhat erratic for each property is called the “capital value” and is published in a “valuation list” 12. Date of last general revaluation? b) Non-Domestic Rates –the unit of occupation (called a a) Domestic Rates - – 2007. hereditament) is the normal unit of assessment. The valua- b) Non-Domestic Rates – 2003 tion assessment is called “rateable value” and is published in 13. Valuation date? a “valuation list” a) Domestic Rates – 1st January 2005 5. Tax rate(s) set by? b) Non-Domestic Rates – 1st April 2001 a) Domestic Rates – the rate is set partly by central govern- 14. Main exemptions/reliefs? ment (the regional rate) and partly by local district council in a) Domestic Rates – agricultural dwellings (20% relief ), oc- which the hereditament is located (the district rate). cupancy by minister of religious (50% relief ), Disabled Per-

A-87 son’s Allowance, relief for individuals on low incomes, hard- 16. Independent body to determine unresolved appeals? ship relief. a) Domestic Rates – If dissatisfied with a decision by the b) Non-Domestic Rates – exemptions apply to agricultural Commissioner of Valuation there is a right of appeal to the land and buildings, places of worship, public parks, property Northern Ireland Valuation Tribunal (with further appeal on occupied and used by charities. Reliefs are available for indus- a point of law to the Lands Tribunal for Northern Ireland) trial premises, small businesses (with NAVs below £15,000), b) Non-Domestic Rates – If dissatisfied with a decision by empty premises, sport and recreational facilities, residential the Commissioner of Valuation there is a right of appeal to homes. There is also transitional relief available to phase in the Lands Tribunal for Northern Ireland (with further ap- the impact of revaluations. peal on a point of law to the Court of Appeal 15. Initial Appeal Process? 17. Amount and percentage of property tax revenue at na- a) Domestic Rates – the ratepayer may apply to LPS, at any tional/subnational level as compared to all other tax rev- time, if they believe their assessment to be incorrect or they enue at national/subnational level? believe they are entitled to a relief or exemption. In the first Total revenue collected (net of reliefs and exemptions) from instance their application will be to the District Valuer re- both the domestic and non-domestic property tax for 2012 sponsible for the area within which their property is located. /13 was in excess of £1.1 billion. This represented approxi- If dissatisfied by the decision of the District Valuer they can mately 6% of the Northern Ireland Assembly’s total expen- appeal to the Commissioner of Valuation for Northern Ire- diture land. 18. Any significant recent changes and important issues? b) Non-Domestic Rates - the ratepayer may apply to LPS, Currently Northern has localized tax setting with each of its at any time, if they believe their assessment to be incorrect 26 District Councils determining annual tax rates for both or they believe they are entitled to a relief or exemption. In domestic and non-domestic properties. With effect from 1st the first instance their application will be to the District April 2015 the 26 district councils will be reconfigured down Valuer responsible for the area within which their property to 11 councils. Those 11 councils will retain the power to set is located. If dissatisfied by the decision of the District Val- annual property tax rates. uer they can appeal to the Commissioner of Valuation for Northern Ireland.

A-88 Appendix A Rates Poundages 2013 Non Non Non Domestic Net Domestic Domestic Domestic Domestic Domestic District Rate Regional Rate Rate District Rate Regional Rate Rate Poundage Poundage Poundage Poundage Poundage Poundage

Antrim 0.276697 0.330200 0.606897 0.003690 0.003882 0.007572 Ards 0.228792 0.330200 0.558992 0.002771 0.003882 0.006653 Armagh City & District 0.305833 0.330200 0.636033 0.004121 0.003882 0.008003 Ballymena 0.276543 0.330200 0.606743 0.003820 0.003882 0.007702 Ballymoney 0.274685 0.330200 0.604885 0.003525 0.003882 0.007407 Banbridge 0.278807 0.330200 0.609007 0.003706 0.003882 0.007588 Belfast 0.270236 0.330200 0.600436 0.003094 0.003882 0.006976 Carrickfergus 0.283757 0.330200 0.613957 0.003881 0.003882 0.007763 Castlereagh 0.182834 0.330200 0.513034 0.002198 0.003882 0.006080 Coleraine 0.243040 0.330200 0.573240 0.003206 0.003882 0.007088 Cookstown 0.225362 0.330200 0.555562 0.002853 0.003882 0.006735 Craigavon 0.251627 0.330200 0.581827 0.003907 0.003882 0.007789 Down 0.265400 0.330200 0.595600 0.003513 0.003882 0.007395 Dungannon & South 0.208151 0.330200 0.538351 0.002542 0.003882 0.006424 Tyrone Fermanagh 0.184227 0.330200 0.514427 0.002543 0.003882 0.006425 Larne 0.257522 0.330200 0.587722 0.003799 0.003882 0.007681 Limavady 0.282389 0.330200 0.612589 0.004124 0.003882 0.008006 Lisburn 0.201716 0.330200 0.531916 0.002643 0.003882 0.006525 Derry 0.288663 0.330200 0.618863 0.004173 0.003882 0.008055 Magherafelt 0.213413 0.330200 0.543613 0.002693 0.003882 0.006575 Moyle 0.316209 0.330200 0.646409 0.003902 0.003882 0.007784 Newry 0.241586 0.330200 0.571786 0.003303 0.003882 0.007185 Newtownabbey 0.267355 0.330200 0.597555 0.003423 0.003882 0.007305 North Down 0.213185 0.330200 0.543385 0.002880 0.003882 0.006762 Omagh 0.234347 0.330200 0.564547 0.003809 0.003882 0.007691 Strabane 0.252792 0.330200 0.582992 0.003715 0.003882 0.007597

A-89 Scotland controls the proportion of tax payable between the different bands. See table below: 1. Title of Property Tax System? There are two property tax systems in Scotland: Valuation Band Range of Values a) Business Rates (or Non-Domestic rates). This tax A Up to and including £27,000 applies to all 220,000 non-domestic properties. b) Council Tax. This tax applies to all 2.5 million do- B £27,001 - £35,000 mestic (i.e. residential) properties. C £35,001 - £45,000 2. Type of property taxed along with brief description? D £45,001 - £56,000 a) Business Rates – real property, but also some E £56,001 - £80,000 rights over property. F £80,001 - £106,000 b) Council Tax – real property. G £106,001 - £212,000 3. Person tax legally imposed on? H More than £212,000 a) Business Rates – the occupier; but the tax is paid by the owner if the property is empty. 7. Frequency of adjustment of tax rate(s)? b) Council Tax – the occupier. The owner pays a) Business Rates – tax rate revised annually; any this tax if the property is unoccupied. Some increase generally limited to change in infla- discretionary relief can be given by the local tion (RPI). authority. b) Council Tax – tax payable for all bands (based on the tax for a Band D Property) are revised 4. Unit of assessment? annually. a) Business Rates – the unit of occupation (called lands and heritage) is the normal unit of as- 8. Tax collected by? sessment. The valuation assessment is called a) Business Rates – local authority but 50% of the “rateable value” and is published in a “valuation tax is retained and 50% is paid into a central roll”. “pool” for redistribution back to local authori- b) Council Tax – the unit of occupation (called a ties. dwelling) is the normal unit of assessment. The b) Council Tax – local authority. valuation band (see below) for each property is 9. Assessor responsible for assessments? published in a “Council Tax List”. a) Business Rates – valuation assessments are 5. Tax rate(s) set by? provided by each of 14 separately appointed a) Business Rates – tax rate set by Scottish gov- local Assessors. ernment. b) Council Tax – property bands are provided by b) Council Tax – there is no set tax rate for council each of 14 separately appointed local Assessors. tax; the amount of tax is determined by which of 8 value “bands” the property falls into (see 10. Basis of valuation? below). The amount of tax is set for each band a) Business Rates – rateable value is an estimate by each separate local authority. of the open market annual rental value of the property based on a number of statutory valua- 6. Current tax rate? tion assumptions, e.g. that the property is avail- a) Business Rates – Standard rate in the pound able to let, is agreed between a willing landlord is 46.2p – Property with a rateable value over and tenant on an FRI basis. £35,000 pay a supplement of 0.9p. In addition b) Council Tax – the value banding is based on the large retail properties with a rateable value on open market sale price of the property based on or over £300,000 which sells both alcohol and a number of statutory assumptions, e.g. that the tobacco pay a health supplement of 13p. There property is freehold, is in reasonable condition, is a Small Business Bonus Scheme which give the valuation reflects existing use, etc. varying rates of relief for small businesses. Other forms of relief and exemptions are also 11. Frequency of general revaluations? available some of which are referred to at 14(a) a) Business Rates – every 5 years. But subject to b) Council Tax – as stated in Q5 above, there is the occasional delay, e.g. 2015 - 2017 no set tax rate for council tax; the amount of b) Council Tax – no general revaluation since the tax is determined by which of 8 value “bands” council tax system was introduced in 1993. the property falls into and the amount of tax 12. Date of last general revaluation? set for each band by local authority. Legislation a) Business Rates – 2010.

A-90 b) Council Tax – no general revaluation since the 17. Property tax revenue vs. other revenue? council tax system was introduced in 1993. a) Business Rates - 3½% of all tax revenue paid 13. Valuation date used for current assessment period? from/in to Scotland. Only business rates and a) Business Rates – April 2008 council tax is devolved to the Scottish govern- b) Council Tax – April 1991 ment. Just under 50% of devolved tax is col- lected from NDR. 14. Main exemptions/reliefs? b) Council Tax - 3½% of all tax revenue paid a) Business Rates – agricultural land and build- from/in to Scotland. Only business rates and ings are exempt along with fish farms, public council tax is devolved to the Scottish govern- parks, highways, etc. There are also a number ment. Just under 50% of devolved tax is col- of reliefs available for different types of prop- lected from Council Tax erty including those occupied by charities, rural shops, etc; local authorities can grant discre- 18. Any significant recent changes and important issues? tionary relief in some cases. There is a lower tax a) Business Rates – there are significant changes rate for small businesses. recently introduced to allow local government b) Council Tax – exempt dwellings include huts, to retain a larger proportion of the tax they col- sheds, bothies, self-catering but those subjects lect. Up until very recently, all the tax collected are entered in the Valuation Roll. Relief is given was paid into a central pool operated by the for those undergoing major repair works to make Scottish government and redistributed to local them habitable, buildings unoccupied for up to 6 authorities by means of a formula which is in- months, those occupied by full time students, etc. tended to reflect local needs and resources. This has very recently been changed so that local au- The Council Tax bill assumes that there are two thorities will retain 50% of the tax they collect adults living in a dwelling. If only one adult with the remaining tax collected being redis- lives there (as their main home), the bill is re- tributed through a complex system of “tariffs” duced by one quarter (25%). and “top ups”, “claw back” and “levy”. However, There is also council tax benefit available for this should not affect taxpayers directly as this people on low incomes. change will not impact on the amount of tax 15. Initial appeal process? they pay. a) Business Rates – taxpayers may apply to the lo- b) Council Tax – no significant changes. How- cal authority if they consider they are entitled ever, council tax is an unpopular property tax to an exemption or relief. Taxpayers may appeal and attracts considerable adverse media cover- to the Assessor if they wish to challenge the age and is very sensitive politically. valuation of a property or they consider there has been a “material change of circumstances” Wales that has reduced the value of the property. Strict time limits apply. 1. Title of Property Tax System? b) Council Tax – taxpayers may appeal to the lo- There are two property tax systems in Wales : cal authority if they consider they are entitled National Non-Domestic Rates (NNDR). This applies to just to an exemption or relief. Taxpayers may make over 100,000 non-domestic properties. a proposal to the Assessor if they wish to chal- Council Tax. This applies to circa 1.38 million domestic (i.e. lenge the banding of a new property or they residential) properties. consider there has been a material reduction in 2. Type of property taxed along with brief description? the value of the property due to changes to the NNDR – real property, but also some rights over property property or its locality. Strict time limits apply. (e.g. advertising rights) 16. Independent body to determine unresolved appeals? Council Tax – real property a) Business Rates – yes; the local Valuation Ap- 3. Person tax legally imposed on? peal Panel for the vast majority of appeals and NNDR - the occupier; but the tax is paid by the owner of the the Lands Tribunal for Scotland for complex property when it is empty. appeals (further appeals lie to the Lands Valu- Council Tax – the resident; the majority of properties in ation Appeal Court). Wales are owner occupied, but where a property is rented, b) Council Tax – yes; the local Valuation Appeal then the tenant would be liable. When a property is empty Panel (further appeal to the Court of Session is the owner would be liable, but may get a discount. Discounts only allowed on a point of law). are decided by local government.

A-91 4. Unit of assessment? 8. Tax collected by? NNDR – the unit of occupation (called a hereditament) is NNDR – local government (apart from rates on central list the normal unit of assessment. The valuation assessment is properties – i.e. properties occupied by “designated persons” called the rateable value, and these are published in a rating as defined in legislation that are used for operational pur- list. The rateable value is an annual rental value taken at the poses, e.g. statutory water providers – this is collected by cen- level of value prevailing for the purposes of the current 2010 tral government). List as at the antecedent valuation date of 1 April 2008. The amounts collected are placed in a central pool which is Council Tax – the unit of occupation (called a hereditament) then redistributed to local government based on the number is the normal unit of assessment. The valuation band (see be- of people living in that specific area. low) for each property is published in a valuation list. This band is based on the capital value of the hereditament as at Council Tax – local government 1 April 2003 9. Assessor responsible for assessments? 5. Tax rate(s) set by? NNDR – valuation assessments are provided by the Valu- NNDR – a national non-domestic multiplier is set by the ation Office Agency (VOA) an executive agency of Her Welsh Assembly Government. Majesty’s Revenue and (HMRC), which is inde- Council Tax – Local government set a rate for a Band D pendent from the local government Billing Authorities that property, and then legislation sets out what is paid for each collect (and indirectly benefit from) the tax. council tax band based on this level. Council Tax – property bandings are provided by the Valua- tion Office Agency (VOA) an executive agency of Her Maj- Band A Under £44,000 Charged at 6/9ths of esty’s Revenue and Customs (HMRC), who are independent Band D from the local government Billing Authorities that collect Band B £44,001 to £65,000 Charged at 7/9ths of and benefit from the tax. Band D 10. Basis of valuation? Band C £65,001 to £91,000 Charged at 8/9ths of NNDR – the rateable value is an estimate of the open mar- Band D ket rental value of the property, based on a number of statu- Band D £91,001 to £123,000 tory valuation assumptions e.g. that the property is vacant Band E £123,001 to £162,000 Charged at 11/9ths of and to let, and in reasonable condition, etc., as at a set date. Band D Council Tax – as stated above the valuation band is based Band F £162,001 to £223,000 Charged at 13/9ths of in the open market capital value of the property, based on a Band D number of statutory valuation assumptions, e.g. the property Band G £223,001 to £324,000 Charged at 15/9ths of is held freehold (except for flats which are assumed to be Band D held on a 99 year ground lease), and is in reasonable condi- Band H £324,001 to £424,000 Charged at 18/9ths of tion, etc. as at a set date. Band D 11. Frequency of general revaluations? Band I £424,001 and above Charged at 21/9ths of NNDR – since the Local Government Finance Act 1988 Band D five yearly revaluations were set in legislation (i.e. 1990 and five yearly thereafter) – however, following the deferment of 6. Current tax rate? the revaluation in England (via the Government’s Growth NNDR - This is set at the time of revaluation and then ad- and Infrastructure Bill) by two years (next revaluation now justed each year to reflect inflation (based on the Retail Price scheduled for 2017) the Welsh Government has also de- Index) until the next revaluation. For the tax year 2013/14 ferred its revaluation. the rate is 46.4p (i.e. for every pound of rateable value 46.4p Council Tax – not set in legislation, the original council tax is paid in tax). There is no separate multiplier for small busi- valuation list came into force on 1 April 1993, and there has nesses in Wales. been one revaluation in Wales since that time. Council Tax – as stated in (5) above each local authority sets its own rate for a Band D property and then, the amounts 12. Date of last general revaluation? payable for each of the other bands is in proportion to that, NNDR – 1 April 2010 as set by legislation. Council Tax – 1 April 2005 7. Frequency of adjustment of tax rate(s)? 13. Valuation date used for current assessment period? NNDR – annual revision linked to the rate of inflation NNDR – 1 April 2008 Council Tax – annual revision Council Tax – 1 April 2003

A-92 14. Main exemptions/reliefs? Proposals can be made at any time up to the date the next NNDR Exemptions – include agricultural land and associ- list is compiled, this is extended for proposals made against ated buildings, fish farms, places of religious worship, public an alteration to the rating list which can be made at any time parks, highways, certain properties used for people who are up to the date the next list is compiled or within 6 months of disabled. These properties would not appear in the rating list. the alteration if this is later, and where a proposal is made as NNDR Reliefs – include properties occupied by charities or a result of a decision by a tribunal needs to be made no later non-profit making organisations, small business rate relief, than 6 months after the compilation of the next list. a short period of relief for empty properties (first three or Grounds of making a proposal can be made because the tax- six months depending on the type of property). There is no payer feels the rateable value (or other part of the entry in transitional relief in Wales between each revaluation. the rating list, such as effective date) is incorrect as appearing Council Tax “exemptions – all hereditaments appear in the in the compiled list, or as a result of an alteration to the rat- council tax valuation list, however a local authority can grant ing list, or as a result of a material change of circumstances “exemptions” from payment for things such as: either to the property itself or to its locality (as defined by • the property being unoccupied and it needs or is legislation). Only one proposal is allowed per circumstance having major repairs or structural alterations (12 per taxpayer i.e. a new occupier would have a right to make a months max), proposal even if the previous occupier had also made a pro- • a charity owns the property and nobody lives there posal on the same grounds. (6 months max), Council Tax – taxpayers may apply to the local government • there is no furniture in the property and nobody if they consider themselves eligible for “exemption” or relief, lives there (6 months max), and can make a proposal to the VOA if they consider their • the property is only occupied by people who are band is too high There was a fixed period of time for appeals aged under 18 years, when the 2005 valuation list came into force, this expired on • nobody is living in the property because the person 30 September 2006, and since that date there are only lim- who usually lives there is in custody, ited circumstances in which an appeal can be made: • nobody is living in the property because the person who usually lives there is living in a residential care Grounds for making an appeal Time limitations home, nursing home or hospital, The property was allocated Appeal must • nobody is living in the property and the person 1 an incorrect band when the be made by 30 who paid the Council Tax has died and probate valuation list was compiled September 2006 hasn’t been granted, May appeal at any 2 Increase to size of property • nobody can live in the property by law, because of time the condition of the property or it is being bought ‘Material Reduction’ – part by the authorities (compulsory purchase), of the property has been May appeal at any • the property is part of another property and a depen- 3 demolished (unless the time dent relative lives in it, for example, a ‘granny flat’, demolition is the first stage of • nobody is living in the property because the per- building work) son who usually lives there is living with, and being A property comes into May appeal at any 4 cared for by, another person, existence or ceases to exist time • nobody is living in the property because the person If there is an increase / decrease who usually lives there has moved out to care for in the part of the property used for domestic purposes another person. May appeal at any 5 within a composite property. time Council Tax reliefs – the local government grant a single per- A composite property is a son allowances, where there is only one person living at the property with both business property who would normally be liable for council tax (25%), and domestic uses. additionally people on low incomes can apply for council tax Addition of entry to the benefit, which is means tested. valuation list – if the property May appeal at any 6 15. Initial appeal process? has been added to the valuation time NNDR – taxpayers may apply to the local government if list. they consider themselves eligible for relief, and can make a Deletion of entry from the May appeal at any 7 valuation list - if the property is proposal to the VOA if they consider their rateable value too time high or that they should be exempt. no longer liable for council tax.

A-93 The council tax banding The contribution made to this budget from NNDR and May appeal within appears to be incorrect Council Tax was as follows: 8 six months from following a valuation tribunal date of decision. NNDR – local government in Wales collected in respect of decision. 2012-13 bills, £ 887,520,000 out of £ 917,737,000 collect- May appeal within The council tax band for a able (in 2012-13, billing authorities in Wales collected 96.7% 9 six months from property has been altered. of NNDR billed) date of alteration. Council Tax - local government in Wales collected in re- May appeal within spect of 2012-13 bills, excluding council tax benefit, A person becomes a taxpayer six months of 10 £1,130,000,000 out of £1,168,000,000million collectable for a property. becoming the taxpayer. (in 2012-13, billing authorities in Wales collected 96.7% of council tax billed) 16. Independent body to determine unresolved appeals? This is a total of £2,017,520,000, which represents 39.52% NNDR – yes; Valuation Tribunal for Wales (with further ap- of the funding for local government and 13.41 % of the total peals to the Lands Chamber of the Upper Tribunal, and then Wales delegated budget (the rest of the budget is received only on a point of law to the Court of Appeal and Supreme from UK taxes such as income tax, corporation tax, etc. that Court) are administered by HMRC for the whole of the UK.) Council Tax – yes; Valuation Tribunal for Wales (VTW) 18. Any significant recent changes and important issues? with further appeal to the High Court only on a point of law. The Welsh Government believes that the funding arrange- 17. Property tax revenue vs. other revenue? ments for Wales are in need of reform, and have engaged The Welsh Government receives its budget from the UK in a series of discussions with the UK Government on the Government. The Welsh budget is set through UK Gov- case for: ernment spending reviews, which set the budget for UK • reform of Welsh devolved funding, and; Government departments and devolved administrations. • access to borrowing powers to finance capital in- Adjustments to the Welsh budget are determined through vestment. the Barnett Formula and applied to the Welsh baseline bud- NNDR - The Welsh Government commissioned a task and get. The Formula reflects changes that the UK Government finish group, headed by Professor Brian Morgan to examine makes and applies them to comparable budgets in Wales. whether the Business Rates regime can be used as a lever for The resources for Wales are provided to the Wales Office fol- economic growth in Wales. lowing a vote by the UK Parliament. The Secretary of State The Business Rates Review, published in June 2012, found for Wales retains funding for the Wales Office’s operations that there was a need to consider issues relating to the de- and the balance is transferred to Wales. Funding is allocated volution of business rates and the local retention of business to the Welsh Government, Assembly Commission, the rates as part of the whole funding system for Wales. Wales Audit Office and the Public Services Ombudsman by In response to the Business Rates Review, the Minister the National Assembly for Wales. ­announced: Within the funding voted to it by the UK Parliament, the £20million funding - from January 2013 - for Business Rate Welsh Government has total discretion over where it spends incentives in all seven Enterprise Zones focussed on new its money. A Draft Budget for the following financial year is start-ups or SMEs that are expanding and increasing their proposed by the Welsh Government each autumn. Assembly permanent workforce. The Welsh Government is matching Committees and other interested parties then scrutinise and the UK Government consequential with £10 million. comment on the Government’s spending proposals, before £1.5 million annual funding - from January 2013 - for they are finalised, and approved by the National Assembly Renewable Energy Producers to support expansion of the for Wales. Budget plans may be changed through a Supple- sector and Wales’ renewable energy capacity; mentary Budget motion approved by the National Assembly Jointly with the Minister for Housing, Regeneration and for Wales. Heritage, a £200,000 fund to encourage the development of While some of the money is spent directly by the Welsh Gov- Business Improvement Districts (BIDs) in Wales over the ernment in accordance with Ministerial priorities, a significant next three years; proportion is allocated to the public bodies which it sponsors The Welsh Government is to press the UK Government to and funds, for example Local Government, the NHS in Wales continue the Small Business Rate Relief Scheme and pro- and Welsh Government Sponsored Public Bodies. pose innovative changes to the Empty Property Rates re- For 2012-13 the total Wales Delegated Budget was gime, based on the recommendations of the report; £15,050,186,000, of which £5,104,513,000 (33.92%) was al- The Minister for Environment and Sustainable Develop- located to local government and communities. ment has written to the UK Government to propose im- A-94 proving relief available for businesses that invest in renew- On 19 December 2012, the Welsh Government passed regu- able energy; lations that would implement new arrangements to support The Welsh Government will work with local authorities in those who will pay council tax in 2013-14. The Regulations Wales and encourage them to use their powers of discretion- (Council Tax Reduction Schemes and Prescribed Require- ary rate relief; ments (Wales) Regulations 2012 and Council Tax Reduction Revamped Welsh Government websites will improve the ac- Schemes (Default Scheme) (Wales) Regulations 2012) set cessibility of information on key business rates issues. out that the maximum level of support that eligible claimants could receive would be 90 per cent. This reflected the short- Council Tax – There are no significant changes envisaged for fall in the transfer of funding from the UK Government. the Council Tax except in respect of the “exemptions” and reliefs. However, the Welsh Government became increasingly con- cerned about the practical impact of the reduction in support The UK Government is implementing a wide ranging and for claimants. significant programme of reform of the welfare system. As part of this, the Council Tax Benefit system was brought to Against this background, the Welsh Government decided to an end on 1 April 2013 and funding transferred to Wales increase the maximum level of support from 90 per cent to so that a new arrangement could be put in place to provide 100 per cent for 2013-14. support with council tax bills. The funding transfer included a cut of 10 per cent based on the UK Government’s estimate of expenditure 2013-14 budget.

A-95 The Council On State Taxation (COST) is the premier state tax The International Property Tax Institute (IPTI) is widely recognized as the organization representing multi-jurisdictional taxpayers in the United States. world’s leading international organization specializing in property tax policy COST is a nonprofit trade organization consisting of over 600 multi-state and practice. IPTI is a nonprofit organization with members around the corporations. COST’s mission is to preserve and promote equitable and world. IPTI’s mission is to provide impartial, objective expert advice in the nondiscriminatory state and local taxation of multi-jurisdictional businesses. area of property tax systems and promote the concept that these systems should be fair and equitable and meet the needs of all stakeholders; i.e., governments, taxpayers, practitioners and academics. 122 C Street, NW, Suite 330 4950 Yonge Street, Suite 2308 Washington, DC 20001 , Ontario, Canada M2N 6K1 Phone: (202) 484-5222 Phone: (416) 228-8874 Fax: (202) 484-5229 Fax: (416) 6445152 www.cost.org www.ipti.org © 2014 COST/IPTI